Audit & Risk Report to the Members

The Audit and Risk Committee's primary role is to ensure that an effective enterprise risk management framework has been implemented. Within this framework, the committee assists the board in fulfilling its oversight responsibilities regarding financial risks, including efficiency and effectiveness of operations; safeguarding of assets and members' deposits; compliance with regulatory requirements; reliability of financial reporting; and independence of the external and internal audit functions. This report outlines the key activities undertaken during the year.

Risk Management

The committee gained assurance that the enterprise risk management framework is effective by reviewing various reports prepared by management. The committee also reviewed various risk-related governing policies and recommended these policies to the board for approval.

Control Framework

The committee gained assurance that management has implemented appropriate internal controls and that regulatory requirements are being met by reviewing reports prepared by management and the Internal Auditor.

Financial Reporting

The committee gained assurance that financial information was reliable and fairly presented by reviewing and approving ACU's accounting policies; reviewing management's financial reporting and budgeting processes; reviewing the quarterly financial statements; and reviewing and recommending the annual audited financial statements to the board for approval. Quarterly, the committee reviewed loan allowances and loan write-offs and recommended these to the board for approval.

Internal Audit Function

The committee oversaw the internal audit function by approving the annual internal audit work plan; gaining assurance the internal audit function is using a risk-based approach; gaining assurance the conduct of internal audit is consistent with professional standards; reviewing reports from the Internal Auditor; meeting in-camera with the Internal Auditor; and evaluating the performance of the internal audit function.

External Auditor

The committee oversaw the External Auditor by approving the engagement letter and external audit fees; reviewing the scope and timing of the External Auditor's work; reviewing the auditor's independence; meeting in-camera with the External Auditor; evaluating the services of the External Auditor; tendering for external audit services; and recommending to the board the appointment of the External Auditor. The committee also reviewed the Canadian Public Accountability Board (CPAB) annual report on audit quality and has implemented a process to discuss the report with the External Auditor annually.

 

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