The directors of the Brookfield Funds Management Limited (“Brookfield Multiplex”) have established an Audit Committee for the Multiplex SITES Trust. The Audit Committee is governed by a formal charter. Below is a summary of the key terms of the charter.
The Audit Committee will consist of a minimum of two members. The majority of these members should be independent non-executive directors. All members must be able to read and understand financial statements, and at least one member must have financial expertise, that is the person must be either a qualified accountant or other financial professional with experience of financial accounting matters. The chairperson of the Audit Committee will be an independent non-executive director who is not the chairperson of the board. Management may be invited to attend meetings of the Audit Committee for reasons of efficiency but shall not be entitled to vote.
Right to Obtain Information
The Audit Committee is entitled to consult with expert advisers and seek expert advice where it considers it reasonable and necessary to carry out its duties at the expense of Brookfield Multiplex. The Audit Committee has a right of access to external auditors and senior management. The Audit Committee will also meet separately with the external auditors at least annually or as otherwise required.
Roles and Responsibilities
The Audit Committee has the following roles and responsibilities:
- The Audit Committee will consider the appropriateness of the accounting policies and principles for the Multiplex SITES Trust and how those principles are applied.
- Management will provide information to the Audit Committee to allow the Committee to review and assess management processes for ensuring compliance with laws, regulations and accounting standards relating to external reporting.
- The external auditors will provide information to the Audit Committee to allow the committee to assess information that affects the quality of financial reports.
- Ensure that significant adjustments, unadjusted differences, disagreements with management and critical accounting policies are discussed with the external auditor.
- Review the financial reports and make recommendation to the board on their approval or amendment.
- The Audit Committee will make recommendations to the board on the appointment, and where necessary the removal of the external auditor for the Multiplex SITES Trust.
- Review the external auditor’s procedures for independence on an annual basis together with any relationships or services, which may impair the external auditor’s independence.
- At the start of each audit the Audit Committee will review the terms of engagement with the external auditor, including the proposed audit scope.
- The external auditor will be invited to attend Audit Committee meetings to review the audit plan, discuss audit results and consider the implications of the external audit findings for the control environment.
- On an annual basis, the Audit Committee will review the performance of the external auditor.
- The Board Risk and Compliance Committee Committee will report to the Committee in accordance with the Compliance Plan.
- The Audit Committee will undertake a self-assessment process annually to determine its objectives for the following year, and to compare its practices with its Charter requirements.