RWS Annual Report 2022 web - Flipbook - Page 83
been applied to the identification and recognition of
provisions in respect of uncertain tax positions recognised
in 2022.
The Committee has reviewed the disclosures provided in
relation to taxation in note 9 and the significant estimates
and judgements policy in note 2.
Going concern
The Committee has reviewed management’s assessment
that the Group has adequate resources to continue in
operational existence for the foreseeable future. This
includes the Directors’ review of the current liquidity of
the Group, the profitability and liquidity in the Group
budget for FY23 and the five-year plan and the impact on
the Group’s banking covenants.
After reviewing the Group’s performance in 2022, along
with budget and forecasts, the Committee endorses the
Directors' reasonable expectation that the Group has
adequate resources to continue in operational existence
for a period of 18 months from the date of this report.
Given this expectation they have continued to adopt the
going concern basis in preparing the financial statements.
Internal control and risk management
The risk management process enables the identification,
assessment and prioritisation of risk through discussions
with executive management. Risks are reviewed by the
Executive Team and other delegated senior leadership
committees to ensure that they continue to remain
relevant. A risk that can seriously affect the performance
or reputation of the Group is termed a principal risk and is
aligned to the Group’s strategic objectives.
Whilst the Audit Committee has delegated authority
for internal control and risk, the Board is ultimately
responsible. The Board has established the level of risk
that is appropriate for the business and acceptable in the
pursuit of the strategic objectives and has therefore set
appropriate policies.
This process ensures that risks are not just the product of
a bottom-up approach but are also examined from a topdown perspective via an integrated senior management
process, which is closely aligned with the Group’s
strategy, in order to enhance the Group’s approach to risk
generally.
External auditor and independence
The Committee is responsible for assessing the
effectiveness of the external audit process, for monitoring
the independence and objectivity of the external
auditor and for making recommendations to the Board
in relation to the appointment of the external auditor.
The Committee is also responsible for developing and
implementing the Group’s policy on the provision of nonaudit services by the external auditor.
In the prior year, Ernst & Young LLP was appointed as
the Group’s auditor following a competitive audit tender
process.
The Committee has considered Ernst & Young LLP's
effectiveness, independence, objectivity and scepticism
throughout the audit tender process and the period
since appointment, through its own observations and
interactions with the external auditor. The Committee
meet the external auditor both formally and informally
throughout the year to discuss, amongst other things,
materiality, audit strategy and audit findings. In accordance
with International Standards on Auditing (UK & Ireland) 260
and Ethical Standard 1 and as a matter of best practice, the
external auditor has confirmed its independence as auditor
of the Company. The Audit Committee assess external
auditor effectiveness through meetings with management,
the external auditor and a review of the audit completed
subsequent to receipt of the signed audit opinion.
Non-audit services
In order to safeguard the independence and objectivity
of the external auditor, the Committee reviews the nature
and extent of the non-audit services supplied, receiving
reports on the balance of audit to non-audit fees. Preapproval is required for any non-audit work from the
Audit Committee Chair. For the financial year ended 30
September 2022, the external auditor has provided £27k
of non-audit work for other assurance related services.
Fees paid to Ernst & Young LLP are set out in note 5 to the
financial statements.
Gordon Stuart
AUDIT COMMITTEE CHAIR
14 December 2022
Internal control and risk-related reviews carried out by the
Committee during the year included reviewing the output
from the Group’s risk review process to identify, evaluate
and mitigate risks and considered whether changes in risk
profile were complete and adequately addressed.
GOVERNANCE REPORT RWS — Annual Report 2022
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