Annual report eng.2019

71 ANNUAL REPORT 2019 6. Authorities and responsibilities of the Committee and tasks completed: The Audit Committee reviewed its work charter and approved the items contained therein, and evaluated the performance of the Committee during 2019. The most important achievements and tasks of the Committee during the year 2019 include the following: - Review of the periodical financial statements before presenting them to the board of directors, express the opinion and recommendation in this respect to the board of directors for the purpose of ensuring the fairness and transparen- cy of financial reports, ensure the soundness and integrity of the financial reports and the Company internal control systems. The Committee held its periodical (quarterly) meetings in which the financial reports issued by the Company financial sector and the external auditor’s office were discussed. The Committee submitted a recommendation for their approval to the board of directors. The financial reports guarantee and integrity mechanism forms were signed for each quarter. - Follow up of the external auditors’ works and ensure that they only submit the services required by the auditing profession to the Company. - Study the external auditors’ remarks on the Company financial statements and follow up the developments in this respect. - Study the applicable accounting policies and express the opinion and recommendation to the board of directors in this respect. - Review of the transactions and dealings with the related parties and submit suitable recommendations in this respect to the board of directors. - Evaluate the extent of adequacy of the internal control systems applied in the Company and prepare a report comprising the opinion and recommendation of the Committee in this respect. - Technical supervision over the Internal Audit Unit in the Company in order to verify the extent of its efficiency in executing the works and tasks outlined by the board of directors. - Review and approve the audit plans proposed by the internal auditor and express remarks on them. The Committee reviewed during its periodical meetings the Company internal audit plan and reviewed the internal audit works prog- ress for the Company sectors/departments, whereby it reviewed the internal audit reports for the following sectors/ departments: • Risk • Legal & Compliance • HR & Admin • IT • Marketing & Sales • Finance & Account - In connection with the reports of the regulators, there were no remarks issued. - Review of the annual report of the Legal Department and Compliance and Control Department. - Recommend to the board of directors to appoint and re-appoint external auditors or change them and fix their fees. It has been recommended to approve re-appointing of (RSMAlbazie & Co.). - Recommend the reappointment of Russell Bedford to the Board of Directors (represented by the partner Dr. Eyad A. Al Rashaid to conduct the internal audit services of the Company in accordance with the regulations and laws. - Recommend the reappointment of Russell Bedford to the Board of Directors (represented by the partner Dr. Saad Al Bloushi to conduct the ICR of the Company in accordance with the regulations and laws. - Recommend approving appointing Grant Thornton Audit Office to review and evaluate the performance of the In- ternal Audit Office and review the report in this regard for a period of three years till 30/06/2019. Based on the above mentioned and presented with regard to the work of the Audit Committee for 2019, the members of the Audit Committee affirm their full keenness to implement the tasks entrusted to them by the Board of Directors in line with leading practices in this area and in accordance with the instructions and regulations of concerned supervisory authorities, in particular, the Capital Markets Authority. Further, the Committee reviewed the replies of the concerned sectors/departments, and verified that the necessary corrective measures have been taken in connection with the remarks set forth under the reports.