What are the rule and responsibilities of audit committee?

• To monitor the integrity of the financial statements of a company, and any formal announcements relating to the company's performance, reviewing significant financial reporting judgement contained in them
• To review the company's internal financial controls and, unless expressly addressed by a separate board risk committee composed of independent directors or by the board itself, to review the company's internal control and risk management systems
• To monitor and review the effectiveness of the company's internal audit function
• To make recommendations to the board, for it to put to shareholders for their approval in general meeting, in relation to the appointment, re-appointment and removal of the external auditor and to approve the remuneration and terms of engagement of the external auditor
• To review and monitor the external auditor's independence and objectivity and the effectiveness of the audit process, taking into consideration relevant UK professional and regulatory requirements
• To develop and implement policy on the engagement of the external auditor to supply non audit services, taking into account relevant ethical guidance regarding the provision of non-audit services by the external audit firm and to report to the board, identifying any matters in respect of which it considers that action and improvement is needed and making recommendations as to the steps to be taken
• To report to the Board how it has discharged its responsibilities, including:
• How it has addressed significant issues arising in the financial statements
• How it has assessed the effectiveness of the audit process
• How auditor objectivity and independence is safeguarded, where the auditor provides nonaudit services