TERMS OF REFERENCE
Annual Financial Statements
Subject to the powers and duties of the Board of Governors, the Audit Committee should review the annual financial statements and carry forward appropriations and recommend their approval to the Board of Governors.
In the course of their review, the Audit Committee should:
Determine whether appropriate accounting principles and auditing standards are being applied.
Discuss with Management and with the Auditor General and/or External Auditor all proposed major changes in accounting policy, the presentation of all large risks or uncertainties, and all estimates or judgments of Management that may be material to financial reporting.
Question Management and the Auditor General and/or External Auditor regarding significant financial recording or presentation issues discussed during the fiscal period and the manner of their resolution.
Examine the audited annual financial statements in conjunction with the report of the Auditor General and/or External Auditor, which may include determining whether the statements:
- reflect properly the significant accounting policies selected;
- reflect estimates and other financial statement elements that are reasonable and consistent;
- disclose adequately major transactions and issues;
- disclose post-year-end significant events;
- are understandable, relevant, reliable and comparable; and,
are complete and consistent
Ask explicitly the Auditor General and/or External Auditor for an opinion about the appropriateness, not just the acceptability, of accounting principles and financial disclosures.
Review periodically with Management and the Auditor General and/or External Auditor all of the University’s major accounting principles, policies and estimates.
Quarterly Statements & Forecasts
The Audit Committee shall review the quarterly financial statements. The Committee shall also review and approve the submission of the quarterly financial forecasts to the province as required under the government reporting entity (GRE).
Consistent with the annual financial statements, the Committee shall discuss appropriate accounting and disclosure policies with Management. However, as quarterly statements are unaudited, an audit opinion will not be received for discussion on quarterly financial statements.