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The Company has established an Audit Committee with effect from 25 September 2006. The Audit Committee is comprised of each of the Directors, with Mr Derek Cowlan also acting as its chair. The role of the Audit Committee in discharging its responsibilities includes: - reviewing the annual and half-year financial reports and other financial information distributed externally. This includes approving new accounting policies to ensure compliance with Australian Accounting Standards and generally accepted accounting principles, and assessing whether the financial information is adequate for shareholder needs;
- assessing corporate risk assessment processes;
- assessing whether non-audit services provided by the external auditor are consistent with maintaining the external auditor's independence;
- reviewing the nomination and performance of the external auditor. The external auditors were appointed in March 2000. The external audit engagement partner was first rotated after the 30 June 2006 audit;
- assessing the adequacy of the internal control framework and the Company's code of conduct;
- monitoring the procedures to ensure compliance with the Corporations Act 2001, ASX Listing Rules and other regulatory requirements; and
- addressing any matters outstanding with auditors, Australian Taxation Office, Australian Securities and Investments Commission, ASX and financial institutions.
The Audit Committee also reviews the performance of the external auditors on an annual basis and meets with them during the year to: - discuss the external audit plans, identifying any significant changes in structure, operations, internal controls or accounting policies likely to impact the financial statements and to review the fees proposed for the audit work to be performed;
- finalise half-year and annual reporting to:
- review the results and findings of the auditor, the adequacy of accounting and financial controls, and to monitor the implementation of any recommendations made; and
- review the draft financial reports and recommend Board approval of the financial reports; and
- as required, to organise, review and report on any special reviews or investigations deemed necessary.
The CEO and the CFO are required to declare in writing to the Board that the financial records of the Company for each financial year have been properly maintained, the Company's financial reports for the year comply with accounting standards and present a true and fair view of the Company's financial condition and operational results. This statement is required annually.
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