Audit Committee is one of the special committees under the board of directors of listed companies, which plays a vital role in the internal and external audit and financial work of the company.
On the composition of the Audit Committee:
Article 38 of the Corporate Governance Standards for Listed Companies (revised 20 18) stipulates that:
The board of directors of a listed company shall set up an audit committee, and may set up special committees on strategy, nomination, remuneration and assessment as required. The special committee is responsible to the board of directors and performs its duties according to the articles of association and the authorization of the board of directors. The proposal of the special committee shall be submitted to the board of directors for deliberation and decision.
The members of the special committees are all composed of directors, among which the independent directors in the audit committee, nomination committee and remuneration and appraisal committee should be the majority and serve as conveners, and the convener of the audit committee should be an accounting professional.
The Audit Committee shall meet at least once every quarter to review the work plan and report submitted by the internal audit department; The Operational Guidelines for the Audit Committee of the Board of Directors of Listed Companies of Shanghai Stock Exchange stipulates that the audit committee shall hold at least four regular meetings every year, and the audit committee may hold interim meetings as required.
An interim meeting may be convened upon the proposal of two or more members of the Audit Committee, or if the convener of the Audit Committee deems it necessary. According to relevant regulations, we can know that listed companies in Shenzhen Stock Exchange require to hold at least one meeting every quarter, that is, at least four times a year, and these four times are distributed in each quarter, while Shanghai Stock Exchange requires to hold at least four regular meetings every year.