AFSTA’S AUDIT COMMITTEE
The purpose of this document is to define the AuditCommittee’s terms of reference. This document will support the team’s ability to understand its scope and operating discipline.
The primary functions of the audit committee are to oversee the audit of the association’s books and records and to review the association’s internal financial controls and procedures. As part of its role and function, the audit committee makes a recommendation to the full board regarding the selection, retention, and termination of an independent organization to conduct the audit services.
The Audit committee, in consultation with the AFSTA Secretariat, should establish the criteria by which a provider of audit services is selected. Specific tasks can be delegated to staff (such as distribution of the request for proposal). The audit committee should evaluate responses and make final recommendations to the AFSTA board who selects the auditors and submitted it to the AFSTA General Assembly for approval.
The audit committee undertakes with AFSTA Secretariat and/or the independent auditor the following:
- Review the adequacy of policy on an annual basis and obtain board approval of any revisions of this policy;
- Review the annual engagement letter, which includes the fee arrangement. In addition, pre-approve any non-audit services provided by the independent auditors, including tax services, before the services are rendered;
- Review the organization’s significant accounting policies, practices and financial reporting controls and the adequacy of such controls;
- Review the organization’s accounting and reporting principles, practices and procedures applied in preparing financial statements;
- Review the scope and general extent of the independent auditor’s general audit, including the factors considered in determining the audit scope and the major risk factors. The independent auditors should confirm to the committee that no limitations have been placed on the scope or nature of the audit procedures;
- Inquire as to the independence of the independent auditors and obtain from them, at least annually, a formal written statement delineating all relationships between the independent auditors and the organization, including other consulting work, if any, performed by the independent auditors for the organization;
- Review the results of the audit with the auditors and AFSTA Secretariat including:
- The independent auditor’s audit of the financial statements and their report;
- Investigate and respond to serious disputes or difficulties arising from the audit, if any;
- Monitor the Association’s compliance with legal and regulatory requirements.
- Review annually the Association’s Standard of Conduct and Code of Ethics policy, if any, and ensure that AFSTA Secretariat has established a system to enforce this policy;
- Advise on how to invest the financial reserve of AFSTA in a secure manner to earn interests in AFSTA banks.
- Azariah Soi – Chairperson
- Kulani Machaba – Vice chairperson
- Mercy Bor – Secretariat