Audit Committee
The Audit Committee of the Central Bank of Malta was established by the Board of Directors in March 2001. Article 13 of the Central Bank of Malta Act Cap 204, gives the power to the Board of Directors to establish an Audit Committee to assist it in fulfilling its responsibilities in matters related to the internal and external audit process, to the system of risk management and internal control and to the financial reporting process. The Committee is composed of three non-executive Board Members, one of whom is designated by the Board to act as Chairperson. The Audit Committee's role encompasses the oversight of financial issues and external reporting, internal audit and control, external audit, risk management and ethics. The tasks of the Audit Committee are governed by its Audit Committee Charter as approved by the Board of Directors.
The broad objectives of the Committee as included in its Audit Committee Charter are to:
- monitor the integrity of the financial statements, and any formal announcements relating to the financial performance of the Bank;
- monitor and review the effectiveness of the internal audit function and strengthen its independence;
- improve the quality of risk management, internal control, audit and financial control;
- implement policy on the engagement of the external auditors including non-audit services;
- monitor and review the external auditor’s independence, objectivity and effectiveness;
- make recommendations to the Board in relation to the appointment and removal of the external auditors;
- improve communication between Board Directors, internal and external auditors and management; and
- monitor the implementation of the principles of auditing ethical practices.
The Committee regulates its own procedures but, as a minimum, it is required to report to the Board four times a year and to meet with the external auditors at least two times a year.