BOARD SIZE FORMATION & INDEPENDENCE

BOARD OF BOARD OF BOARD OF BOARD OF

FINANCE & RISK HUMAN AUDIT & PROCUREMENT
MANAGEMENT RESOURSE & COMPLIANCE COMMITTEE
COMMITTEE REMUNERATION COMMITTEE
COMMITTEE
Mr. Amjad member member chairman
Nazir k
Mr. Sajid member member member
Mehmood
Qazi
Mr. chairman member
Muhammad
Anwer
Mr. Yousaf chairman member
Nasim Khokar

Mr.Zahid Mir member member chairman

Mr. Abdul member member

Jabbar Memon

QUESTION # 6:
 What is an Accounting Standard?
An accounting standard is a common set of principles, standards and procedures that define
the basis of financial accounting policies and practices. Accounting standards improve the
transparency of financial reporting in all countries. In the United States, the Generally Accepted
Accounting Principles form the set of accounting standards widely accepted for preparing
financial statements.

 Purpose:
Accounting standards specify when and how economic events are to be recognized, measured
and displayed. External entities, such as banks, investors and regulatory agencies, rely on
accounting standards to ensure relevant and accurate information is provided about the entity.
These technical pronouncements have ensured transparency in reporting and set the
boundaries for financial reporting measures.

QUESTION # 7:

 What is Audit committee? What is meant by Audit committee independence?

An audit committee is one of the major operating committees of a company's board of
directors that is in charge of overseeing financial reporting and disclosure. All U.S. publicly-
traded companies must maintain a qualified audit committee in order to be listed on a stock
exchange. Committee members must be made up of independent outside directors, including a
minimum of one person who qualifies as a financial expert.

 Purpose:
The purpose of the audit committee being comprised of members from outside of the
organization is to ensure that the audit process is neutral by removing the conflict of interest.

 Audit Committee Independence:

Internationally, the audit committee is the committee of the board of the directors responsible
for over sight of the financial reporting process, selection of the independent auditor, and
receipt of audit results both internal and external.