The Internal Audit Committee of Crystal Management JSC
The Internal Audit Committee (hereinafter – the Committee) of the Board of Directors of Crystal Management JSC (hereinafter – the Company) has been established under the resolution of the Board of Directors of the Company (Minutes No.04 -21/SD on the results of absentee balloting of the Board of Directors of the Company).
The Committee is a permanent advisory board by the Board of Directors, created in order to improve efficiency of managing the Company by way of drawing-up recommendations to the Board of Directors in administration of timely and effective control over financial and economic activities of the Company, and developing necessary recommendations to the Board of Directors and to the General Director of the Company.
In its activities, the Committee shall be fully beholden to the Board of Directors and shall act within the powers granted to it by the Board of Directors.
The main functions of the Committee is to develop objective recommendations for the Board of Directors upon following matters:
- establishing an effective system of control over the financial and economic activities of the Company (incl., over the completeness and reliability of financial statements);
- control over reliability and efficiency of internal control and risk management systems, as well as over the execution of documents in the field of corporate governance;
- control over the independence of external and internal audit, as well as over the process of ensuring compliance with the Law of the Republic of Kazakhstan;
- monitoring the integrity of the financial statements of the Company and any official statements regarding the financial results of the Company's activities, and consideration of important judgments regarding the financial statements contained therein;
- verification of the internal financial control mechanisms of the Company and, if this is not specifically done by a separate risk committee under the Board of Directors, or the Board of Directors itself, verification of internal control mechanisms and risk management systems;
- monitoring and analysis of the effectiveness of the internal audit function of the Company;
- advising the Board of Directors on the appointment, reappointment, removal from office and terms of employment of an auditor, including remuneration;
- checking and monitoring the independence of the auditor, as well as the objectivity and effectiveness of the audit process;
- development and implementation of a policy to recruit an auditor to provide non-audit services;
- checking the adequacy of the mechanisms by which the employees of the Company can confidentially express concerns about possible violations of financial reporting or other issues in order to ensure that there are available means to conduct a proportionate and independent investigation of such issues and to take follow-up actions;
- other matters in accordance with the requirements the Statement on the Committee.
The Committee and its members shall have the duties to:
- exercise the powers assigned to it in accordance with the Statement and other internal guidelines of the Company;
- if necessary, submit opinions on the issues included in the agenda of a meeting of the Board of Directors, related to the responsibilities of the Committee;
- report to the Board of Directors on the results of their activities;
- not to disclose information received in the course of the activities of the Committee;
- inform the Board of Directors about any changes in its status as an independent director or about an emergence of a conflict of interest in connection with decisions to be made by the Committee;
- carry out its activities honestly and conscientiously in the interests of shareholders and the Company as a whole;
- devote sufficient time to effectively perform its duties.