Annual Report 2015
The internal audit work covers
financial and operational risk
assurance, regulatory assurance,
testing of legal compliance and
financial controls and other business
commercial support work.
The Group’s external auditors,
Deloitte LLP, attend Audit Committee
meetings and provide detailed
reports regarding audit planning
and t he results of their external
independent audit.
The responsibilities of the external
independent auditor in the area of
financial reporting are set out in their
report in each year’s Annual Report.
Accountability and Audit
– Financial Reporting and Systems
The Board of Directors recognises
the need to present a balanced,
understandable and clearly defined
assessment of the Group’s operational
and financial performance and
position including its future
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prospects. This is provided by a
review of the Group’s performance as
set out in the Strategic Report of each
year’s Annual Report.
Business plans, annual budgets
and investment proposals for each
business, and for the Group, have
been formally prepared, reviewed
and approved by the Board. These
include profit and loss and cash flow
forecasts. Actual financial results and
cash flows, including a comparison
with budgets and forecasts, are
regularly reported to the Board
with variances being identified and
used to initiate any action deemed
appropriate. Forecasts of the Group’s
compliance with its borrowing
covenants are also prepared on a
regular basis, and forecasts of the
Group’s level of its undrawn and
available borrowing facilities for
liquidity purposes are also prepared
and reported to the Board.
– Internal Control
The Board attaches considerable
importance to its system of
internal control and for reviewing
its effectiveness, including its
responsibility for taking reasonable
steps for the safeguarding of the
assets of the Company and the Group
and for preventing and detecting
fraud and other irregularities. Such
a system is designed to manage
rather than eliminate the risk, and can
nonetheless provide only reasonable
and not absolute assurance against
misstatement or loss. There is
an established internal control
framework within the Group that is
continually reviewed and updated
taking into account the nature of the
Group’s operations.
– Internal Audit
Specific topics covered by Internal
Audit during the year included but
were not limited to:
• Accounting and financial
management
• Review of business risks