Heritage Oil | Audit Committee

to monitor the integrity of the financial statements, including annual and interim reports and any other formal announcement relating to the Group's financial performance;
to report to the Board on its proceedings, identifying any matters in respect of which it considers that action or improvement is needed and making recommendations as to the steps to be taken;
to review the annual audit plan and effectiveness of the external audit;
to review the Group's budgets;
to consider the establishment of an internal audit function;
to review the Group's internal control procedures and risk management systems;
to oversee the relationship with the external auditors and review the effectiveness of the external audit process;
to make recommendations to the Board on the appointment, review and removal of external auditors;
to approve the external auditors' remuneration;
to monitor the external auditors independence including reviewing the policy on provision of non-audit services; and
to review whistle-blowing arrangements and the Company's procedures for detecting fraud.