– Audit Committee
The main role and responsibilities
of the Audit Committee are set out
in written terms of reference and
include:
• Monitoring the integrity of
financial statements and
reviewing significant financial
reporting judgements contained
therein
• Reviewing the Group’s internal
financial controls
• Monitoring and reviewing the
effectiveness of the Group’s
Internal Audit function
• Recommending to the Board
the appointment of the external
auditor and monitoring the
auditor’s independence,
performance and effectiveness
and approving the nature and
scope of material external audits
and approving the auditor’s
remuneration.
The members of the Audit
Committee are Ram Kumar and
Adrian Page, who receive written
reports from Internal Audit and the
external auditor twice a year.
Deloitte LLP (the Group’s external
independent auditor), the Company
Secretary, the Group Internal Audit
Manager and, where appropriate,
other financial management also
receive this information and are
invited to Audit Committee meetings.
The Board is satisfied that the
members of the Audit Committee
have recent and relevant financial
experience and are able to approach
matters with a level of independent
judgement.
The work of the Audit Committee
specifically covers group business
risks, and the work of Internal Audit
and the external auditor.
In order to facilitate the Group’s
risk management process, key risks
facing each business within the
Group and the Group as a whole are
regularly reviewed, documented and
summarised by senior management.
Every six months the management
teams of each business formally
discuss, review, approve and
document the relevant business
risks. The objective of this process is
to ensure that each management
team is identifying, prioritising
and rating all key business risks,
and implementing and amending,
where necessary, appropriate
procedures and controls as required
to mitigate these risks. It also allows
management to highlight, document
and prioritise as appropriate any
outstanding actions with respect
to the implementation of these
procedures and controls. The Internal
Audit function also critically assesses
the risks, controls and procedures
identified and the rating assigned to
them. This information is reviewed by
the Audit Committee.
Every year the Audit Committee
receives an Internal Audit report on
the results of internal audit work
together with agreed management
actions in relation to audit
recommendations.
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Annual Report 2015
Board is identified or as otherwise
considered appropriate by the Board.