Audit Committee Annual Action Points
AVITA MEDICAL LIMITED (“COMPANY”).
Financial Reporting and Internal Controls
- Review half-year and annual financial statements
- Consider management’s selection of accounting policies and principles
- Consider the external audit of the financial statements and the external auditor’s report thereon
- Consider internal controls including the Company’s policies and procedures to assess, monitor and manage financial risks (and other business risks if authorized)
Annual meeting with External Auditor
- Discuss the Company’s choice of accounting policies and methods, and any recommended changes
- Discuss the adequacy and effectiveness of the Company’s internal controls
- Discuss any significant findings and recommendations of the external auditor and management’s response thereto
- Discuss any difficulties or disputes with management encountered during the course of the audit including any restrictions or access to required information
External Auditor Engagement
- Establish/review criteria for the selection, appointment and rotation of external auditor
- Recommend to the Board to appoint and replace the external auditor and approve the terms on which the external auditor is engaged
- Establish/review permissible services that the external auditor may perform for the company and pre-approve all audit/non-audit services
- Confirm the independence of the external auditor, including reviewing the external auditor’s non-audit services and related fees
- Ensure that the external auditor is requested to attend the AGM of the Company and is available to answer questions from shareholders
Internal Communications and Reporting
- Provide an annual report that includes the committee’s review and discussion of matters with management and the external auditor
- Regularly update the Board about committee activities and make appropriate recommendations
- Ensure the Board is fully aware of matters which may significantly impact the financial conditions or affairs of the business
- Other
- Verify the membership of the committee is in accordance with the Audit Committee Charter
- Review the independence of each committee member based on ASX Corporate Governance Guidelines
- Review and update the Audit Committee Charter and Action Points
- Develop and oversee procedures for treating complaints or employee concerns received by the Company regarding accounting, internal accounting controls and auditing matter