The responsibilities of the Audit and Risk Committee are as follows:
- Review AIIB’s financial statements and accounting, auditing and financial reporting practices, procedures and issues.
- Review the selection procedures for and the qualification and performance of the external auditors; review the reports from the external auditors and ensure appropriate action be taken in respect of major improvement areas identified.
- Review the scope of work and internal audit plan and the effectiveness of the internal audit function.
- Review the effectiveness of internal control system.
- Review AIIB’s financial and risk-related policies; annually review the Bank’s risk management framework and its risk appetite statement.
- Receive reports on violations of the Prohibited Practices Policy (PPP) from the Managing Director of the Complaints-resolution, Evaluation and Integrity Unit (CEIU).