The board of directors of TBF Company has decided to establish an audit committee for the first time. The committee will be made up of three independent non-executive directors. As the company has six non-executive directors, three will serve on the committee in the first year and the other three will then serve for the next year. Of the six non-executive directors, only one has a comprehensive knowledge of financial operations. The committee will meet every two months. One of the non-executive directors will also serve as the chairman of the company for the next year and it has been decided that he will also be the chairman of the audit committee for this period. According to best practice in corporate governance, which of the following statements is correct in relation to the above arrangements?