Audit committee

The audit committee is chaired by Miles Roberts and also comprises of Michael Averill. The committee has direct access to the group’s auditor and liaises with executive management to review the effectiveness of internal controls.

Under its terms of reference, the audit committee monitors the integrity of the group’s financial statements. The committee is responsible for monitoring the effectiveness of the external audit process and making recommendations to the board in relation to the appointment, re-appointment and remuneration of the external auditor. It is responsible for ensuring that an appropriate relationship between the group and the external auditor is maintained, including reviewing non-audit services and fees. The group has agreed a policy on non-audit work, which sets out monetary limits for work that may be undertaken by the external auditor, in order to safeguard audit independence. The committee also reviews annually the group’s systems of internal control and the processes for monitoring and evaluating the risks facing the group. The committee reviews its terms of reference and its effectiveness annually and recommends to the board any changes required as a result of the review.

The audit committee discharges its responsibilities by:

• Reviewing the group’s draft financial statements and interim results statement prior to board approval and reviewing the external auditor’s detailed reports thereon;
• Reviewing the appropriateness of the group’s accounting policies;
• Reviewing the potential impact in the group’s financial statements of certain matters such as impairments of intangible and tangible fixed asset values and proposed International Financial Reporting Standards;
• Reviewing and approving the audit fee and reviewing those non-audit fees payable to the group’s external auditor that require committee approval;
• Reviewing the external auditor’s plan for the audit of the group’s financial statements which included key risks on the financial statements, confirmations of auditor independence and the proposed audit fee, and approving the terms of engagement for the audit; and
• Reviewing an annual report on the group’s systems of internal control and its effectiveness and reporting to the board on the results of the review.

Terms of reference - audit committee

Click here to download our terms of reference from our audit committee.