Policy & Practices of the Audit Committee of XXX Bank
Each member of the audit committee of United Southern Bank shall be a member of the board of directors who is not currently employed by the bank as an officer or employee of the bank. At least one member shall understand generally accepted accounting principles (GAAP) and financial statements, be able to assess the general application of GAAP in connection with the accounting for estimates, accruals, and reserves. He/she shall have experience in preparing, auditing, analyzing, or evaluating financial statements of a breadth and complexity comparable to that of the public company's financial statements, understand internal controls and procedures for financial accounting and understand audit committee functions.
The audit committee shall meet at least quarterly or at an interim request of the internal auditor or senior management. These quarterly meetings shall primarily be an update report on recent internal and external audits with appropriate minutes and reports forwarded to the full board. Management may be invited to these meetings in the interest of immediate, effective communications.
Confidential and/or anonymous submissions or complaints by employees regarding questionable accounting, internal controls, or auditing matters presented to a board member, a member of bank management or the internal auditor shall be brought to the immediate attention of the chairman of the audit committee.
Appropriate procedures for the timely investigation of complaints received and the retention for a reasonable time period of documentation concerning the complaint and its subsequent resolution shall be set by the audit committee.