Section 310, The Companies Act, 2009

(1) The auditors of a company shall make a report to themembers on the accounts examined by them and on every balance sheet and profit and loss account, and on all group financial statements copies of which are to be laid before the company in a general meeting during the auditors’ tenure of office. (2) In addition to the report made under subsection (1) the auditor shall, in the case of a public company also make a report to an audit committee which shall be established by the public (3) The audit committee referred to in subsection (2) shall consist of an equal number of directors and representatives of the shareholders of the company (subject to a maximum number of six members) and shall examine the auditors’ report and make recommendations thereon to the annual general meeting as it may think fit; but a member of the audit committee shall not be entitled to remuneration and shall be subject to re-election annually. (4) Any member may nominate a shareholder as a member of the audit committee by giving notice in writing of the nomination to the secretary of the company at least 21 days before the annual general meeting. (5) Subject to such other additional functions and powers that the company’s articles of association may stipulate, the objectives and functions of the audit committee shall be to– Auditors’ 236 237 (a) ascertain whether the accounting and reporting policies of the company are in accordance with legal requirements and agreed ethical practices; (b) review the scope and planning of audit requirements; (c) review the findings on management matters in conjunction with the auditor and departmental responses on the findings; (d) keep under review the effectiveness of the company’s system of accounting and internal control; (e) make recommendations to the board of directors in regard to the appointment, removal and remuneration of the auditors of the company; and (f) authorise the internal auditor to carry out investigations into any activities of the company which may be of interest or concern to the committee.