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ANNUAL REPORT
2016
6. Authorities and responsibilities of the Committee and tasks completed:
The Committee has reviewed and approved its Charter, adopted the clauses contained therein, assessed
the performance of the Committee, assessed the tasks performed by them during the year of 2016. Some
of the most important achievements of the Committee during the year 2016 are as follows:
1- Review, express opinions and recommendations over the periodic financial statements before pre-
senting the same to the BOD. This is to ensure the fairness and transparency of the financial reports and
internal control systems of the company. The Committee held its regular meetings (quarterly) to review the
audit reports that have been issued by the Finance Division within the company and the external auditor.
The Committee has also submitted a recommendation to the Board of Directors that was signed in order
to ensure the integrity of the mechanism models and the financial reports of every quarter.
2 - To monitor the work of the external auditors and to ensure that they do not provide other services to
the company except for the services required by the auditing profession.
3 - To study and analyze the notes and feedback of external auditors on the financial statements of the
company and follow up on that.
4 - To study the accounting policies, to express an opinion, and to make recommendations to the board
of directors in that regards.
5 - To review transactions and dealing with related parties and to make appropriate recommendations
thereon to the Board of Directors.
6 - To assess the adequacy of the internal control systems in place within the company and to prepare a
report containing the opinion of the Committee's recommendations in this regard.
7 - To provide technical supervision of the Internal Audit Unit in the company in order to ensure its effec-
tiveness in the implementation of actions and tasks set by the Board of Directors.
8 - To recommend the appointment of an Internal Audit Unit Manager.
9 - To review and approve the audit plans proposed by the internal auditor, and provide feedback on it.
The Committee has reviewed the internal audit plan for the company and the progress of work of the
internal audit process for divisions/departments of the company during its periodic meetings; as it has
reviewed and discussed the internal audit reports of the following divisions/departments:
• Legal
• Human Resources and Administration
• Sales and Marketing
• Finance
• Projects
• Property Management
• Business Development
• Information Technology
The Committee has also reviewed the responses of divisions/departments concerned. This is to make sure
that the necessary corrective actions has been taken according to the observations contained in the reports.
10 - In regards to the reports of the regulators, no notes were issued.
11- To review annual report of the Legal & Compliance Departments.
12- To bring forth recommendations to the Board of Directors in regards to appointing and/or re-appoint-
ing of external auditors or changing them and determining their fees. It has been recommended to reap-
point (Ernst & Young) as an external auditor for the year 2017 and stopping the engagement with Baker
Tilly firm, as per the regulations and laws.
Based on the above mentioned and presented with regard to the work of the Audit Committee for 2016,
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.
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