The Audit Committee represents the IOC President and the Executive Board (EB), and assists the Director General’s Office in fulfilling their responsibilities in terms of risk management, financial reporting, control and governance. The Committee has the authority and responsibility to take action as it deems necessary, and to perform other duties as assigned by the EB and/or the IOC President.
The Audit Committee has various roles and responsibilities in different areas:
The Committee is responsible for monitoring the integrity of the IOC’s financial statements and any other formal financial announcement relating to its financial condition; and for reviewing financial reporting judgments.
It reviews and confirms the consistency of the IOC’s accounting policies and standards and its estimates and judgments, taking into account the views of the external auditors.
It also reports its findings to the EB.
Internal control and risk management systems
The Audit Committee supervises and promotes the IOC internal control and risk management systems and reports to the EB on the risks to which the IOC is exposed; the level of risk considered acceptable; measures for mitigating risks; and the adequacy of these control and reporting systems. It verifies that effective disaster recovery/business continuity plans are in place.
Compliance and fraud
The Audit Committee monitors compliance with policies, procedures and applicable regulations.
It reviews arrangements by which IOC staff and suppliers may, in confidence, raise concerns about possible improprieties in matters of ethics or financial reporting. It ensures that these arrangements permit appropriate investigation and follow-up action.
It is also responsible for reviewing the adequacy and effectiveness of the IOC’s fraud detection mechanisms.
The Audit Committee monitors the effectiveness of the internal audit function.
It approves the appointment and removal of the head of the internal audit function.
It assesses the scope of the internal audit function and annual internal audit plan. It ensures it has adequate resources and information for it to perform in accordance with the relevant professional standards.
Lastly, it reviews management’s response to internal audit findings and recommendations.
The Audit Committee makes recommendations to the EB, for approval by the Session, concerning the appointment/reappointment/removal of the external auditor. It oversees the selection process for a new auditor and, if an auditor resigns, investigates the issues behind this and decide if action is required.
On behalf of the EB, it manages the relationship with the external auditor, including, but not limited to, remuneration and terms of engagement, and assessing their independence, qualifications and effectiveness of the audit process, which includes a report by the auditor on the firm’s own internal quality procedures.
It reviews and approves the annual external audit plan; ensures that it is consistent with the scope of the audit engagement; and reviews the findings with the external auditor.
Lastly, it pre-approves all audit and non-audit services to be performed by the external auditors, allowing for minor exceptions to be approved by the Audit Committee prior to completion of the work.
With the Director of Legal Affairs, the Audit Committee reviews legal and regulatory matters that may have a material impact on the organisation’s reputation or financial health, related compliance policies and regulators’ reports.
The Audit Committee ensures that IT operations and projects are aligned with the organisation’s needs, as defined in the IOC strategic plan, and that data security systems and procedures are effective.
Periodically, the Audit Committee reviews the IOC Staff Regulations with the Director General. With the Director of Legal Affairs, it assesses compliance with the Staff Regulations.