Board Committees

The Board has established one Committee; namely the Audit Committee.

Committee Structure

Committee members are chosen for the skills, experience and other qualities they bring to the Committee. At the next Board meeting following each Committee meeting, the Board is given a report by the Chairman of the respective Committee and Minutes of the meeting are tabled. The Audit Committee is comprised of two Non-Executive Directors, who are duly appointed by the Board.

Audit Committee

The Audit Committee is delegated by the Board with responsibility for reviewing monitoring the:
  • integrity of the financial statements and the financial reporting and audit process.
    external auditor’s qualifications, performance and independence.
  • systems of internal control of KAML
  • systems for ensuring operational efficiency and cost control.
  • systems for approval and monitoring compliance with laws and regulations (both in Papua New Guinea and overseas).
  • implementation of Board decisions by management and making recommendations to the Board for the appointment of the external auditor.
In the course of fulfilling its mandate, the Committee meets with the external auditors.
i. Annual Financial Statements

The Audit Committee reviews the annual financial statements to determine whether they are complete and consistent with the information known to Committee members and to assess whether the financial statements reflect appropriate accounting principles.

ii. External Audit

The Audit Committee is responsible for making recommendations to the Board on appointment and terms of engagement of the external auditors. The selection is made from appropriately qualified companies in accordance with Board policy. The Board submits the name of the recommended appointee to shareholders for ratification.
The Committee ensures that significant findings and recommendations made by the external auditors are received and discussed promptly, and that management responds to recommendations by the external auditors in a timely manner. The external auditor is invited to the Annual General Meeting of shareholders and is available to answer relevant questions from shareholders.

iii. Compliance

The Audit Committee reviews the effectiveness of the systems for monitoring compliance with all legal and regulatory obligations and the Constitution of the Company. The Committee obtains regular updates from management and satisfies itself that all regulatory compliance matters have been considered in the preparation of the financial statements.

Reviews of the findings of any examinations by regulatory agencies are undertaken and the Chairman of the Audit Committee has the right to approach a regulator directly in the event of a prudential issue arising.