Internal Financial Control
The Board recognises its responsibility for the Company's system of internal control. In accepting that no system of internal control can provide absolute assurance against material loss or mis-statement, the current system of control is designed to manage risks which are inherent in the Group's business. The Board confirms that there is an ongoing process for identifying, evaluating and managing the significant risks faced by the Group.
The Audit Committee is responsible for the review of the Group's system of internal financial control for the financial year and the period up to the date of approval of the financial statements. The committee is responsible for the following:
- Monitoring the integrity of the financial statements of the Company, including its annual and interim reports, preliminary results announcements and any other formal announcement relating to its financial performance, reviewing significant financial reporting issues.
- Reviewing and challenging where necessary:
- The consistency of, and any changes to, accounting policies both on a year-on-year basis and across the Company/Group;
- The methods used to account for significant or unusual transactions where different approaches are possible;
- Whether the Company has followed appropriate accounting standards and made appropriate estimates and judgements, taking into account the views of the external auditor;
- The clarity of disclosure in the Company's financial reports and the context in which statements are made; and
- All material information presented with the financial statements, such as the operating and financial review and the corporate governance statement (insofar as it relates to the audit and risk management).
The Board has reviewed the operation and effectiveness of the Group's system of internal financial control for the financial year and the period up to the date of approval of the financial statements.