Internal and External Audit

Internal Audit
The Head of Internal Audit is invited to attend each Audit Committee meeting where he provides assurance, independent of the assurance provided by the Chief Financial Officer, that internal control activities, which have been subject to audit by his team, are operating effectively.
The Group has an Internal Audit Charter which states that the Internal Audit Director is accountable to the Audit Committee and is to provide ENRC Group management with the following:
- An independent, objective, positive assurance on effectiveness of internal controls.
- A value-adding consulting service designed to improve the effectiveness and efficiency of the Group’s operations and to safeguard both the assets and the integrity of the Group.

Whistleblowing
The Audit Committee reviews the arrangements by which employees can raise any concerns about workplace fraud or mismanagement on a confidential basis.

All whistleblowing incidents are taken very seriously by the Committee.  Any complaint is investigated in the first instance and a decision taken about further steps.  Feedback is provided to the person making the complaint.  Written records are kept of all whistleblowing incidents and a regular status report is presented at each Board meeting.

In 2011, the whistleblowing procedure was upgraded with the introduction of an external whistleblowing helpline, available in four languages and covering all our business operations, with exception of Tuoli in China, which is expected to come online in 2012.

External Audit
PricewaterhouseCoopers LLP have been the Company’s auditors since before it was listed on the London Stock Exchange in December 2007.  The Audit Committee reviews the overall performance of the auditors annually and is responsible for making formal recommendations each year to the Board on the continuation of the external auditors in office.

The Audit Committee is responsible to the Board for ensuring that the external auditors remain independent of the Company in all material respects and that they have adequate resources available to them to enable the delivery of an objective audit to the shareholders.

The Audit Committee also reviews the level and nature of any non-audit work to be performed during the year and considers whether it is appropriate for this work to be carried out by the external auditors.  The Audit Committee maintains a policy regarding acceptable non-audit work, which incorporates authority levels for approving such work.  The auditors are precluded from engaging in non-audit services that would compromise their independence and objectivity or violate any laws or regulations affecting their appointment as auditors.  Note 34 to the financial statements shows the value of the non-audit work carried out by PricewaterhouseCoopers LLP during the year.