Laopu Gold Co., Ltd. (Stock Code: 6181) has published the Terms of Reference for its Audit Committee in alignment with applicable legal and regulatory requirements. The document outlines the committee’s mandate to supervise and verify both internal and external audits, strengthen internal controls, and ensure the accuracy of financial reports.
Members of the Audit Committee must be non-executive directors, with over half serving as independent non-executive directors. At least one independent non-executive director is required to possess appropriate accounting or related financial management expertise. The committee is tasked with evaluating the external auditor’s performance, guiding internal audit activities, reviewing and monitoring financial reporting systems, and overseeing risk management and internal controls.
The Terms of Reference detail the procedures for selecting and replacing committee members, stipulate that the committee must meet at least twice a year, and specify protocols for communication with the external auditor. The committee is expected to assess financial reporting integrity, ensure adequate resources for the internal audit function, and verify proper implementation of the Company’s internal control systems. The document further empowers the committee to access company accounts and request necessary information for fulfilling its responsibilities.
In addition, the Terms of Reference clarify that the chairperson, who must be an independent non-executive director, or another designated member, will attend annual general meetings to address shareholder questions about the committee’s oversight. The Audit Committee must also maintain confidentiality, keep detailed meeting records, and report its resolutions to the board of directors for consideration.
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