Xiamen Yan Palace Bird’s Nest Industry Co., Ltd. (Stock Code: 1497) has published the Terms of Reference for its Audit Committee under the Board of Directors. The document emphasizes the committee’s role in overseeing internal and external audits, monitoring internal controls, and reviewing financial reports in accordance with the Company Law, the Articles of Association, and the Hong Kong Listing Rules.

The Audit Committee comprises at least three non-executive directors, with over half serving as independent non-executive directors. One independent non-executive director with professional accounting or related financial expertise presides as Chairman. The committee is tasked with supervising the work of external auditors, guiding internal audits, and reviewing the effectiveness of the company’s risk management and internal control systems, as well as the integrity of financial disclosures.

Meetings are conducted at least twice a year, and more frequent sessions may occur if necessary. The Terms of Reference outline procedures for appointing external auditors, evaluating their objectivity, and ensuring that non-audit services do not compromise independence. The committee also reviews corporate governance policies, monitors compliance with legal and regulatory requirements, and communicates with both management and external auditors to ensure timely and accurate financial reporting.

The Terms of Reference clarify that the committee’s proposals are submitted to the Board of Directors for final decision. They also highlight the requirement for sufficient resources and clear reporting lines for smooth and effective oversight of the company’s audit activities and overall financial governance.