Kuwait Energy
Kuwait Energy Plc, Queensway House, Hilgrove Street, St Helier, Jersey JEI 1ES, Channel Islands
(B)
the methods used to account for significant or unusual transactions where
different approaches are possible;
(C)
where the accounting treatment is open to different approaches, considering
whether the Company has adopted appropriate accounting standards and,
where necessary, made appropriate estimates and judgements taking into
account the views of the external auditor;
(D)
reviewing the clarity and completeness of disclosures in the financial reports
and statements and considering whether the disclosures made are set
properly in context; and
(E)
reviewing all material information presented with the financial statements,
such as the business review/operating and financial review and the corporate
governance statement (insofar as it relates to the audit and risk
management).
(e)
Risk Management and Internal Control
(i)
To periodically review, evaluate and discuss with management and the internal and
external auditors the scope, adequacy and effectiveness of the group’s internal
control and risk assessment and management systems, including the group’s
significant financial and other business risk exposures and the processes established
and steps taken by management to identify, monitor, control, report and mitigate
such exposures, and recommend to the board any actions as may be necessary to
address any weaknesses.
(ii)
To consider reports prepared by internal audit, internal risk, the external auditors,
the company secretary and others as the Committee may request, on the operation of
internal controls within the group, any significant risk management failures and
management’s responses.
(iii)
to evaluate annually and discuss with management the design and effectiveness of:
(A)
the ‘control culture’ being set by the management through its
communication of the importance of internal control and management of
risk;
(B)
the group’s internal controls and procedures for financial reporting, to
ensure that the financial statements derived from the underlying financial
systems comply with relevant standards and requirements;
(C)
disclosure controls and procedures designed to ensure that information
disclosed by the group is properly accumulated and communicated to senior
management to allow appropriate discussions regarding disclosure to take
place;
(iv)
to consider and make recommendations to the board regarding the group’s risk
appetite vis-à-vis its strategic objectives and make recommendations to the board
regarding risk management strategy;
(v)
to review key risk areas which include: