The primary responsibility of an audit committee, such as the one Simon Harvey has been appointed to chair, is to oversee the financial reporting process. This involves ensuring the accuracy, completeness, and transparency of the financial statements and disclosures made by the bank. The audit committee plays a pivotal role in assessing the internal controls in place, managing relationships with external auditors, and evaluating the risk management strategies implemented by the bank. Furthermore, the committee is also tasked with monitoring compliance with legal and regulatory requirements, thereby safeguarding the organization's integrity and reputation. This role is critical in maintaining the trust of shareholders and other stakeholders in the financial health and management of the bank.

Choice A is incorrect. While identifying and assessing the organization's risks is a crucial part of risk management, it is not typically the responsibility of the audit committee. This task usually falls under the purview of risk management teams or committees.

Choice B is incorrect. The audit committee does not generally review and approve risk management strategies and plans to mitigate and manage risks. This role belongs to senior management or a dedicated risk committee, who are responsible for developing and implementing these strategies.

Choice D is incorrect. Communicating executive compensation decisions to shareholders and other stakeholders in the organization does not fall within the scope of an audit committee's responsibilities. This task would typically be handled by either human resources or a compensation committee.

Things to Remember

• The main function of an audit committee is to ensure the integrity, accuracy, and transparency of the company's financial statements and disclosures.

• The audit committee also has a role in overseeing internal controls, interacting with