and internal control of the College, and other duties as directed by the Board. The Committee’s role includes a focus on the qualitative aspects of the financial reporting to stakeholders and on the College’s processes to manage business and financial risk. Administration. The College administration is responsible for 1) preparation, presentation and integrity of the College’s accounting records, budgets and financial statements, 2) education of audit committee members on changes to applicable accounting standards, 3) implementation of internal controls and procedures in order to promote compliance with accounting standards and applicable laws and regulations, and 4) day-to-day interface with external auditors during the audit process. External Auditors. External auditors provide independent review of the College’s financial systems, controls and reporting, and compliance with applicable financial standards, and shall present their findings in an annual financial statement in accordance with generally accepted auditing standards. In addition, the external auditors will prepare filings as directed in their contract. DUTIES OF THE AUDIT COMMITTEE: External Audit 1. Recommend to the Board the appointment, retention and dismissal of external auditors. 2. Provide oversight to the annual financial audit process. 3. Require the lead audit partner and reviewing audit partner be rotated off the audit at least every six (6) years with a two (2) year ‘time-out’ period. 4. Ensure the audit firm has no relationship with the College that may adversely affect the independence of the audit firm in performing work for the College. 5. Ensure the following employment restrictions are followed: A. The audit firm has not employed the College’s President, Vice President of Finance and Administration and/or the Director of Finance since the beginning of the fiscal year prior to the audit year. B. Audit team members for the College audit have not been employed by the College since the beginning of the fiscal year prior to the audit year. C. The College may not hire audit team members for a period of 2 fiscal years beyond their work on the College audit. 6. Review the proposed external audit scope and approach for the current year in light of the College’s present circumstances, risk profiles, and changes in the regulatory environment. 7. Maintain free and open communication with the external audit firm and the administration. Page 2 of 3
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