Audit Committee
ENRC’s Audit Committee is chaired by Mr Gerhard Ammann, who has over 30 years’ experience as an auditor and who acted as Chairman of Deloitte in Switzerland until 2007. The Audit Committee members are Sir Paul Judge, Mr Roderick Thomson and Mr Terence Wilkinson, all of whom are regarded by the Board as independent non-executive Directors and each of whom has extensive business experience.
The Company complies with the Code recommendations regarding membership of the Audit Committee.
Under its terms of reference, the Committee considers the following issues:
- The integrity of the Company’s financial reporting.
- The internal controls and risk management systems.
- The effectiveness of the internal audit function, including the review and recorded acceptance or rejection of recommendations from Internal Audit Reports.
- The relationship with the external auditors.
The Audit Committee is required to meet at least four times a year. The meetings are aligned with the corporate reporting cycle to enable the Committee to discharge its duties effectively. In particular, the Committee schedules its meetings to enable it to review and comment on key financial announcements before making recommendations to the Board for their release.
The Chairman of the Audit Committee reports verbally to the Board on the actions of the Committee and updates the Board on any issues which require further investigation, action or improvement.
Whilst only members of the Committee are entitled to attend meetings, the Chairman of the Committee invites the Chief Financial Officer, the Chief Executive Officer, the General Counsel, the Company Secretary and the Chairman of the Board to attend. In addition, he invites the Head of Internal Audit, the Head of Group Risk and the Group Global Head of Compliance to attend and update the Committee at each of its meetings. The external auditors are also invited to each meeting of the Audit Committee and they meet separately with the Committee members, without management being present, at least once a year.
During the year the following matters are reviewed:
- Accounting policies, estimates and judgements including methodology and results of the Group’s annual impairment review.
- Confirmation of the ability of the Group to continue as a going concern.
- The Preliminary and Interim Results announcements, financial statements and Annual Report and Accounts.
- All internal audit reports and investigations.
- The integration of the acquired assets.
- Internal controls and risk management.
- Compliance.
- All external audit reports.
The Committee also received regular updates on the progress of Project Arrow - an ongoing programme to improve the efficiency of reporting and business systems.