Principles :
240. The Board should establish an audit committee but this will depend on the nature and size of
the company and the complexity and diversity of its operations.

241. The audit committee approves the risk based internal audit plan, the annual expenditure and
capital budget of the auditing department and evaluates the performance of the internal audit
function annually.

242. The audit committee should –
(a) assist the Board to fulfill its obligations relating to financial reporting by appointing
Board members to consider specific audit issues;
(b) strengthen the independence of the external auditors by providing them with another
channel of communication with the Board other than the chairperson of the Board,
chief executive officer, finance director or chief financial officer; and
(c) enhance, through the manner in which it discharges its function, public confidence in
the integrity of the company’s financial statements.

• According to the NATIONAL CODE ON CORPORATE GOVERNANCE ZIMBABWE