Explanation:
The Audit Committee plays a critical governance role. Its primary responsibilities include providing oversight of the financial reporting process, overseeing the internal audit function, monitoring the internal control systems, and ensuring compliance with relevant laws and regulations.
Option B describes the duties of the Risk Committee or the Board of Directors. Option C corresponds to the Executive Committee. Option D describes the responsibilities of the Operational Risk Management function or the Chief Risk Officer (CRO).
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Q.48 Tom Seal, a director at a large European bank, has just been appointed to the Audit Committee of the bank. Which of the following tasks is the Audit Committee most likely to perform?
A
Providing input into policies and procedures implementation, monitoring compliance with relevant regulations and overseeing internal control systems
B
Setting the firm's risk appetite and overseeing the operations of the firm to ensure that it is operating within the limits set by this appetite.
C
Determining the most important issues that should be addressed by the full board and enforcing board policies.
D
Gathering all pertinent operational risk data, including information on risk exposures, controls, indicators, the status of action plans, and changes to the risk profile.