The Authority shall have a permanent committee called “Internal Audit Committee” to be formed by a Board’s resolution. It shall consist of three members of the Board provided that the Board’s chairman shall not be one of them. The committee shall ensure an effective system of financial and accounting control and of risk management in the Authority. Moreover, it shall review the internal audit systems set by the executive management and shall review the internal and external auditing. All recommendations or decisions shall be submitted to the Board. The internal audit committee shall have the following competences: 1. Review the internal audit system in order to judge its efficiency and sufficiency and submit the necessary recommendations in that concern to the Board. 2. Review the periodical and annual financial statements and give opinions on them before submitting the same to the Board. 3. Submit proposals and recommendations regarding all regulations related to the financial affairs department, purchasing rules, tenders, contracts, and treasury matters; and request the preparation of necessary reports. 4. Recommend the appointment and dismissal of the Authority’s Auditors and define their fees. 5. Approve the annual internal audit plan. 6. Provide coordination between the executive management, the Auditor and the Internal Audit Office. 7. Verify the independency of the Authority’s Auditor. 8. Follow up the annual report of the observations of the State Audit Bureau related to the Authority’s operations, and the procedures followed by the executive management. 9. Participate in considering the reasons behind incidents such as thefts, embezzlement or fires and suggest necessary systems to avoid them; follow up the settlement of the potential damages and claim compensations from any who are liable. The Committee shall prepare its internal bylaws and submit these to the Board to be approved.