Investors

Audit committee

The audit committee comprises three independent non-executive directors.

Members

Role and responsibilities

The role of the audit committee includes:

  Principal responsibilities of the Committee Key areas formally discussed
Financial Statements

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;

Significant accounting issues at the half year and year end (see below); and

Approval of the Group’s corporate assumptions 

External audit

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 2019 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.

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 2020 and consideration for future years; and

Assessment of key findings raised from internal audits conducted in the year.

Whistleblowing procedures 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.
Other matters

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.

 

Download the audit committee's terms of reference PDF (0.19MB)

Read more about the committee in the 2019 Annual Report and Accounts


Key contact

Duncan Wood,
Company Secretary
Contact
T: +44 131 475 3000