? 1. The Listing Rules of HKEx (3.2 1) stipulate that each issuer of a listed company must set up an audit committee, all of which are non-executive directors. The audit committee must have at least three members, at least one of whom must be an independent non-executive director of accounting or financial management.
2. Regarding the responsibilities of the audit committee, 9. (e) According to the Guidelines for the Effective Operation of Audit Committees issued by the Hong Kong Institute of Accountants, the main responsibilities of audit committees include monitoring the financial reporting procedures, internal control and risk management of companies.
? 3. Regarding the specific reporting system of internal audit, the audit practice bulletin11/kloc-0-2 of the International Association of Internal Auditors (CIA) holds that the executive director of audit should report to the audit committee functionally and to the CEO of the organization administratively.
That is to say, an audit Committee should be set up, one of which is a financial major; The Audit Committee has an Audit Department, which selects and hires personnel as needed. The company system in Hong Kong adopts the management mode of European and American legal systems, emphasizing credit. Therefore, according to the requirements of the International Association of Internal Auditors, at least one internal audit department must have CIA qualification or Hong Kong CPA qualification, which is conducive to enhancing public trust and stock price.