Audit Committee

The Committee shall consist of two members. Leading employees of Otello cannot be appointed as members of a Committee. The members of the Committee is selected in light of an evaluation of the company’s need for the employees to have a competence which, based on Otello’s business and organization, is necessary in order for the Committee to conduct its tasks. At least one member has possessed qualifications within accounting or audit services, and two of the members are independent from the management.

The Audit Committee shall act as a preparatory bode for the Board of Directors with respect to financial control and oversight of the integrity of the financial statements and disclosures of Otello. Briefly summarized, some of the tasks of the Audit Committee include:

  • Prepare the Board of Directors’ maintenance and review of the process for reporting on financials.
  • Review and monitor the systems for internal control and risk management, as well as Otello’s internal audit (if such is established).
  • Keep on-going contact with Otello’s auditor with respect to the audit of the annual accounts.
  • Assess and monitor the auditor’s independence, including to what extent services other than audit are delivered by the auditor or the auditor firm constitute a threat to auditor’s independence.

Decision making authority shall remain with the Board of Directors and are not to be delegated to the Committee. The Committee shall report to the Board of Directors on a regular basis, and the report to the Board of Directors shall contain recommendations for the Board of Directors.

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