Eastern Virginia Bankshares (EVBS)

The Audit Committee

Charles R. Revere

The Audit Committee

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Audit Committee

The Audit Committee of Eastern Virginia Bankshares shall consist of independent directors with requisite skills and expertise, (such as the requirement of a “financial expert”) as defined in statutes, regulatory guidelines, and generally accepted practice.

The Audit Committee shall engage or direct management to engage sufficient resources, whether internal or external, to fulfill its responsibilities including but not limited to internal audit, internal control, risk assessment, compliance, financial reporting practices, and accounting policies.

The Eastern Virginia Bankshares Audit Committee shall receive reports at least quarterly, in meetings of record, from the Internal Auditor and the EVB Risk Management Officer, related to the Internal Audit and Risk Management Activities of Eastern Virginia Bankshares.

The Eastern Virginia Bankshares Audit Committee is, therefore, highly dependent on both the risk management and internal auditing activities for feedback on risk assessment, management, and internal control systems.

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The relationship between the EVB Risk Management Officer and the Eastern Virginia Bankshares Audit Committee should be one that includes both reporting and oversight functions. The Risk Management Officer provides oversight and coordination on behalf of the Audit Committee, the Board, and senior management of EVB on matters related to risk. The Risk Management Officer provides regular updates to the Board and the Audit Committee on all related matters.

Likewise, the Internal Auditor is directly responsible to the Audit Committee and Board for providing an acceptable scope of internal audit coverage. The execution of approved audit plans and schedules, including adequate reports of findings and recommendations to the Audit Committee, is a prerequisite to meeting the minimum requirement.

The Audit Committee of Eastern Virginia Bankshares shall rely upon both the internal audit function and management in determining a one-year audit plan, and in determining that it best addresses risk issues that face the organization.

At its discretion, the Audit Committee may direct the Risk Management Officer and/or the Internal Auditor to conduct investigations or special studies related to any matter within the operation of Eastern Virginia Bankshares.

The Audit Committee