The Audit Committee comprises the following members:
The Audit Committee met four times during 2021 and currently comprises three independent Non-Executive Directors. In line with Code requirements and following her appointment as Chair of the Company, Nicoletta Giadrossi retired as a member of the committee with effect from 31 December 2020 and Catherine Krajicek was appointed a member of the committee with effect from 1 January 2021. The Chair of the Board is not a member of the committee but attends its meetings by invitation. Further information on the role, responsibilities and work of the Audit Committee is included in the Audit Committee Report on pages 96 to 101.
Role and responsibilities
The role of the Audit Committee includes:
|Principal responsibilities of the Committee||Key areas formally discussed|
Monitoring the integrity of the Financial Statements of the Group and formal announcements relating to the Group’s financial performance;
Reviewing any significant financial reporting judgements; and
Reviewing the appropriateness of accounting policies, their consistent application and disclosures in financial statements
Going concern conclusions and linkage to the Viability Statement; and
Significant accounting issues at the half year and year end (see below);
Overseeing the Group’s relationship with the external auditors, including:
making recommendations to the Board as to the appointment or reappointment of the external auditors;
reviewing their terms of engagement and engagement for non-audit services; and
monitoring the external auditors’ independence,objectivity and effectiveness.
Reviewing the external auditors’ scope and audit plan for the 2021 year end;
Discussing the materiality levels set by the auditors;
Approval of the auditors’ remuneration;
Consideration of the results of the external audit with the auditors and management; and
Assessment of the effectiveness of the external audit (see overleaf).
|Internal risk management and assurance||
Reviewing the Group’s internal financial controls and internal control and risk management systems and oversight of the Group’s Risk Management Committee; and
Monitoring and reviewing the effectiveness of the Group’s internal audit function.
Reviewing the Group’s corporate and operational risk register;
Reviewing reports on the activities of the Risk Management Committee;
Selection of internal audit work planned for 2021 and consideration for future years; and
Assessment of key findings raised from internal audits conducted in the year.
Reviewing the Group’s whistleblowing procedures and ensuring that arrangements are in place for the proportionate and independent investigation of possible improprieties in respect of financial reporting and other matters and for appropriate follow-up action.
Reviewing and approving of the Group’s whistleblowing procedures.
Reviewing the Group’s policy for approval of non-audit work to the Company’s auditors; and
Reviewing booking of Group reserves and resources.
Review and approval of the Group policy for approval of non-audit work to the Company’s auditors; and
Classification of reserves and resources for disclosure in the Annual Report.
The review of the Annual Report and Accounts for fair, balanced and understandable presentation and disclosure, while considered by the Audit Committee, is formally performed and approved by the full Board.
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