Audit Committee in Albania

1. Audit Committee in Albania • Legal framework • Law 9226 /2006 “On banks in Republic of Albania” • Law 9901/2008 “On entrepreneurs and commercial companies” • Corporate Governance Code approval on late 2011 • Regulation no 64 / 2012 of Banks of Albania “ On core management principles of banks and branches of foreign banks and criteria on the approval of their administrators

2. Responsibilities of Audit Committee ref: Albanian legal framework law 9662/2006 • audits and supervises accounting procedures and internal control of the bank, • including the procedures defined by the Bank of Albania, and • supervises the implementation of these procedures • audits the bank accounts and respective registrations; • considers internal audit reports and monitors the way conclusions from such reports are dealt with; • c) proposes the external auditor and realizes the communication between him and the internal audit of the bank; • d) evaluates the financial situation of the bank based on the report of • the external auditor; • e) controls compliance of the activity of the bank with laws and bylaws • and notifies Board of Directors of the bank about the conclusions; • f) gives an opinion to the Board of Directors of the bank under request ; • g) approves the financial reports and statements prepared by the • bank for disclosure

4. Role of Audit Committee • Independent oversight and monitoring of the • company`s financial reporting • internal controls and • Company`s risk management policies and programs • Insuring accurate and transparent disclosure Challenge : Audit Committee Effectiveness and enhancing performance • Effective use of AC for corporate governance • Effective functioning of AC • Assessing AC effectiveness