The board is responsible for the total process of risk management, which includes ensuring that the system of internal control is adequate and effective.
The board delegates this internal control responsibility to the audit committee.
The board is responsible for the total process of risk management, which includes ensuring that the system of internal control is adequate and effective.
The board delegates this internal control responsibility to the audit committee.
Review the company’s internal financial controls
Monitor the adequacy of the internal control systems, with a specific focus on:
– Control environment
– Management attitude
– Management controls
Review compliance with regulations, legislation and ethical practices (such as environmental policies and codes of conduct), and ensure that systems are in place to support such compliant behaviour.
Review the company’s fraud risk management policy, ensuring that awareness is promoted and reporting and investigation mechanisms exist.
Give its approval to the statements in the annual report relating to internal control and risk management.
Receive reports on the conclusions of any tests carried out on the controls by the internal or external auditors, and consider the recommendations that are made.
Where necessary, the committee may be required to supervise major transactions for appropriateness and validity.
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