The committee is responsible for receiving audit reports and monitoring risk and compliance for the company. The composition of the audit and risk membership should be based on knowledge and skills relating to audit and risk. It has three members. The main duties of the committee are laid out as follows:

1. Financial reporting

Review and challenge the actions and judgements in relation to the quarterly, interim and full financial statements before submission to the Board, paying particular attention to:

1. Accounting policies, systems, controls and practices;

2. Areas involving significant judgment, estimation of uncertainty and the provisions inthe financial statements;

3. Methods used to account for significant or unusual transactions;

4. Compliance with accounting standards;

5. Significant adjustments resulting from the audit;

6. Compliance with legal and regulatory and financial reporting requirements; and

7. Consider whether the controls established to prevent fraud and illegal acts are adequate and to ensure all major cases of fraud/illegal acts are reported to the Audit and Risk Committee Chair. 

1. Statutory Audit

1. Recommend to the Board for the appointment, reappointment, removal and remuneration of the statutory auditors;

2. Oversee and at least annually review the relationship with statutory auditors;

3. Discusses problems and reservations arising from the interim and the final audits and any matters the statutory auditor may wish to discuss;

4. Discusses the nature and scope of the audit and ensures cooperation with Internal Audit; and

5. Review any findings and recommendations of the Statutory Auditors and monitor progress in implementing recommendations.

1.  Risk management

Act as a sounding board for the head of quality and risk management on any professional risk matters, reviewing any significant risk management judgment calls made by him/her and receive from him/her periodic reports on the risk management activities of the firm including the below:

1. Review of the TYC's key policies and processes for identifying and assessing business risks (including quality and ethics and independence), the management of these risks and an assessment of their robustness, appropriateness and effectiveness;

2. Review the annual professional risk management business plan;

3. Review the outcome of the various quality, risk and independence compliance programmes operating across the firm and any proposed remedial actions;

4. Any significant risk management judgment calls made within the firm;

5. Review the status of, and significant findings from, any regulatory inspections or regulatory violations that have occurred in the period;

6. An assessment of the adequacy of the levels of professional indemnity insurance and other insurance cover maintained for the TYC 

7. An annual report from the firm's money laundering officer on any financial crime;

8. The position on any significant claims and circumstances and how the associated 'lessons learned' have been fed back into the firm;

9. A summary of matters reported to the firm's whistle-blowing hotlines and conduct of investigations into any significant matters reported to the hotline;

10. The firm's commercial risk appetite;

11. Internal audit reports related to professional risk management;

12. Financial position and risk;

13. Oversight of the culture of quality and integrity within the Board and monitoring the 'tone at the top' set across the TYC by the Chair and the Executive Committee; and

14. Review the content of, and the adherence to, the TYC's code of conduct.

1. Internal audit

1. Oversee the effectiveness of the TYC's internal audit function, including the appointment of the partner in charge of the function and the adequacy of resources available;

2. Review and approve the annual work programme of the internal audit work plan including in particular with respect to enterprise risk;

3. Review and consider any reports issued by internal audit;

4. Ensure the internal auditor has direct access to the Audit and Risk Committee Chair and is accountable to the Audit and Risk Committee; and

Other roles and responsibilities include:

1. Ensure that accurate and complete financial records are maintained 

∙ Monitor income and expenditures against projections 

∙ Review and recommend financial policies to the board, including ensuring adequate internal controls and maintaining financial records in accordance with standard accounting practices 

1. Ensure that accurate, timely, and meaningful financial statements are prepared and presented to the board 

∙ Present monthly financial statements to the board 

1. Oversee budget preparation and financial planning 

∙ Propose for board approval a budget that reflects the organization’s goals and board policies

 ∙ Ensure that the budget accurately reflects the needs, expenses, and revenue of the organization 

1. Safeguard the organization’s assets 

∙ Review proposed new funding for ongoing financial implications, recommending approval or disapproval to the board 

∙ Ensure that the organization has the proper risk-management provisions in place 

1. Help the full board understand the organization’s financial affairs 

∙ Ensure that the board as a whole is well informed about the organization’s finances 

∙ Educate the board about financial matters 

1. Ensure compliance with state and other requirements related to the organization’s finances 

∙ Ensure that organization maintains adequate insurance coverage