Code of Practice for Council Members

14 Code of Practice for Council Members 11 2.3. External and Internal Audit The Audit Committee will assist the Council in providing oversight of the University’s external and internal audit arrangement. External Audit External audit will provide an objective and independent review of the financial reporting of the University, help to promote consistency and reliability in reporting and to ensure transparency and accountability in the use of financial resources. The University has appointed an external auditor to conduct an audit of the University’s financial statements in accordance with Hong Kong Standards on Auditing issued by the Hong Kong Institute of Certified Public Accountants, the Statement of Recommended Practice issued by UGC, as well as other guidelines/ practices/ developments that are relevant to the University. They will give assurance on the reliability of financial information/ statements. Internal Audit According to the Institute of Internal Auditors (IIA) Standards, “Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic disciplined approach to evaluate and improve the effectiveness of risk management, control and governance process.” The Audit Committee carries out the following scope of internal audit service, through the Internal Audit Office: • Financial reviews to focus on the accuracy of financial information which substantiates financial analysis and interpretation. • Operation reviews to evaluate the adequacy and effectiveness of internal controls built along a process, in order to establish and enhance good business practices. • Compliance reviews to provide management with assurance on compliance with specific policies, procedures and applicable laws and regulations. 2.4. Personnel Matters Subject to Section 11 of the University Ordinance, all appointments and contracts of employment are made on the authority of the Council, even though in practice the Council delegates these responsibilities to the relevant committees (e.g. Administrative and Planning Committee). The University is the legal employer and has responsibility for the University’s employment policy. This includes matters such as: