PURPOSE OF THE COMMITTEE
The purpose of the Audit Committee is to assist the Board of Directors of Security California Bancorp and its subsidiary Security Bank of California in fulfilling its oversight responsibilities for the financial reporting process, the system of internal controls over financial reporting, the audit process, and the company’s process for monitoring compliance with laws and regulations as well as the code of conduct.
COMPOSITION OF THE COMMITTEE
The Audit Committee is composed of a minimum of three (3) independent directors, at lease one of which shall be a “financial expert” as defined in the Sarbanes-Oxley Act of 2002.
The Audit Committee will meet at least four (4) times a year.
The Committee will be responsible for monitoring the integrity of the Company’s financial statements, the independence and qualifications of its external auditor, the Company’s system of internal controls, the performance of the Company’s internal audit process and external auditor and the Company’s compliance with laws, regulations and its code of conduct. These responsibilities also include:
- To appoint, compensate, retain and oversee the work of the independent registered public accounting firm hired by the Company to serve as its external auditor.
- To appoint, compensate and oversee the work of the outsourced internal audit firm employed by the Company to conduct the internal audits.
- To provide an open avenue of communication between the external auditor, the internal auditor and the Board of Directors.
- To retain outside advisors, including counsel, as it determines necessary to carry out its duties.
- To annually review the Company’s Code of Conduct, the Audit Committee Charter, as well as the Company’s Audit Plan and Budget.