(a). Risk Management and the System of Internal Control – Whilst the company’s system of internal control is designed to help mitigate risk, the audit committee focuses on financial reporting, fraud and compliance.

Culture Compliance – The audit committee must recognize how critical the right tone at the top is. The company is required to ensure discipline in the boardroom as well as among employees.

Oversight of Management and Internal Audit – The committee relies heavily on internal audit to provide an objective view on how the company is handling a number of key risks, including those relating to financial reporting and compliance.

Relationship with External Auditors – External auditors are in a unique position to provide unfiltered and unbiased feedback to the committee about management and the company’s processes.

(b).Conflict of Interest: It is a cardinal duty of directors to act in good faith in the best interests of their companies. This duty has the potential to conflict with the director’s personal interest. Good faith cannot be defined with precision, but it may be measured by an evaluation of the director’s conduct, the soundness and reasonability of the decision-making process and whether he acted rationally under the circumstance, even if the final decision was not good enough.

Confidentiality: Owing to the fiduciary relationship between a director and the company he serves, the director shall not disclose any information concerning the company or any confidential information entrusted to him/her to any third party without consent from the company.

(c). Money Laundering is an ongoing threat which has the potential to adversely affect Ghana’s reputation and financial sector. Ghana, in recent years, has taken tremendous strides to combat ML through the present numerous laws and directives. Penalties that are administrative in nature and will be imposed consequent upon examination of a Market Operator and observance of exceptions or contraventions by Securities and Exchange Commission (SEC), Ghana Examiners reported by other agencies and Exchange Financial Intelligence Centre or Economic & Organized Crime Organization.

How to Avoid Tax Evasion Charges

Penalties for Income Tax Fraud – This includes the failure to pay estimated tax or a final tax, and the failure to make a return, keep records, or supply information. Upon conviction, the taxpayer is guilty of a misdemeanour and is subject to other penalties allowed by law.

Tax evasion is regarded as wilful, so you may be subject to fines and penalties by the Ghana Revenue Authority (GRA) for tax strategies considered to be illegal even when you claim you are not aware of that law. The best way to avoid being charged with tax evasion is to know the tax laws for income taxes and employment taxes. For example, knowing what deductions are legal and the record keeping requirements for deductions is a big factor in avoiding an audit. For employers, knowing the payroll tax reporting and payment requirements will help keep you out of trouble.