At the end of December 2019, the Office of the Polish Financial Supervision Authority (“PFSA”) published a set of good practices concerning the appointment, composition and operation of an audit committee (“Good Practices”). In general, the role of an audit committee is to support the supervisory board in relation to financial reporting, monitoring of internal control and risk management, as well as internal audit.
Who are the Good Practices addressed to?
The Good Practices are addressed to entities obliged to appoint and maintain an audit committee in their organisational structure. These entities include banks, insurance companies, investment fund companies, brokerage houses, electronic money institutions, national payment institutions and other financial institutions.
What do the Good Practices contain?
The Good Practices contain a description of the applicable legal provisions, as well as the KNF’s position on good practices with regard to the appointment, composition and operation of an audit committee. In particular, it is worth noting the KNF’s guidance on the criteria to be met by members of an audit committee in terms of their independence, knowledge and skills. The good practices also contain an extensive description of the standards related to an audit committee’s fulfilment of its statutory tasks, including the participation of an audit committee in the process of appointing an audit firm to carry out an audit of financial statements.