"Have a structure to independently verify and safeguard the integrity of the company's financial reporting"
Recommendation 4.1: Require the chief executive officer (or equivalent) and the chief financial officer (or equivalent) to state in writing to the board that the company's financial reports present a true and fair view, in all material respects, of the company's financial condition and operational results and are in accordance with relevant accounting standards.
The Company's chief executive officer/chief operating officer//chief financial officer report in writing to the Board that the Company's financial statements for each half and full year present a true and fair view in all material respects, of the Company's financial condition and operational results and are in accordance with accounting standards.
Recommendation 4.2: The board should establish an audit committee.
The Board has not established an audit committee as, due to the Company's size and its operations, the Board considers an audit committee's functions and responsibilities can be adequately and efficiently discharged by the Board as a whole, operating in accordance with the Company's codes of conduct and other mechanisms designed to ensure independent judgment in decision making, as set out in relation to best practice recommendation 2.
Recommendation 4.3: Structure the audit committee so that it consists of:
As the Board as a whole fulfils the functions and responsibilities of an audit committee, the structure of the audit committee is not met.
Recommendation 4.4: The audit committee should have a formal charter.
Although there is no separate audit committee and hence no formal charter, in fulfilling the functions and responsibilities of an audit committee, the Board considers and deals with matters which would ordinarily be attended to by an audit committee, including:
Recommendation 4.5: Provide the information indicated in the ASX Corporate Governance Council's Guide to Reporting on Principle 4.
As the Board as a whole fulfils the functions and responsibilities of an audit committee, the names and qualifications of each of the members of the Board, and details of attendance at Board meetings, are set out in the Company's annual report.
The Board has not formalised any procedures for the selection and appointment of the Company's external auditor or rotation of external audit engagement partners, but reviews these matters on an ongoing basis and implements changes as required.
The Board has so far as it is applicable provided relevant information in this statement.