The Internal Audit Department is governed by the Board Audit Committee (BAC) which consists of non-executive directors. It assists the BAC and the Board in fulfilling their responsibilities. The head of the Internal Audit Department reviews and reports to the Chairman Audit Committee on the following aspects of Company’s operations:
- Adequacy and effectiveness of internal controls
- Management of financial risk
- Continued assurance that financial accounting and other records and reports provide a true and fair view of Company’s operations
- Safeguard of Company’s operations with applicable regulatory framework, including Companies Ordinance 1984, Code of Corporate Governance, other applicable statues, International Accounting Standards (as adopted by Institute of Chartered Accountants of Pakistan) and best practices.
- Companies of respective departments with policies, plans and procedures as laid down by the management
- Compliance of Company’s internal control structure with corporate governance provisions and International Profession Practices Framework issued by Institute of Internal Auditors, USA.
The Internal Audit function is an independent appraisal activity in the Company for the review of accounting, financial and operational matters. It acts as a management control and resident value adding agent. Internal audit reviews are risk-based and impartial. The broad targets of these reviews are operational efficiency, safeguard of profitability and Company’s interests, establishment and observance of internal controls. Internal Audit’s scope covers financial as well as operational aspects and is an effective tool to monitor compliance with management policies.