Annual report and accounts 2023 - Flipbook - Page 90
A.G. BARR p.l.c. Annual Report and Accounts 2023
Audit and Risk Committee Report continued
related to the performance of the half year review and
work regarding the verification of German sales volumes
to the German packaging authority for the purposes of
the ‘Green Dot’ packaging scheme. The nature of and
level of fees for the non-audit services provided were
considered by Deloitte who concluded that they did not
present a threat to Deloitte’s independence.
Deloitte was appointed as the Group’s external auditor
in May 2017 following a competitive tender process.
There are no contractual obligations which restrict the
ARC’s choice of external auditor. The senior statutory
auditor rotates every five years to ensure independence.
David Mitchell therefore replaced David Sweeney during
the 2022/23 financial year, as noted above. The ARC
acknowledges the requirement to tender the external
audit contract at least every ten years. The Company
confirms that it has complied with the provisions of the
Competition and Markets Authority’s Statutory Audit
Services Order in respect of the financial year.
During the year, the ARC reviewed and monitored the
external auditor’s independence and objectivity and the
effectiveness of the external audit process. The ARC
reviewed and approved the external auditor’s plan for
undertaking the half year review and the year end audit,
including the scope of their work and their proposed
approach to the key risk areas identified. After
discussion and challenge the ARC approved this plan.
The ARC reviewed the detailed reports prepared by the
external auditor setting out their findings from the half
year review and the year end audit, with a particular
focus on the areas of audit risk identified. The ARC also
received comprehensive papers from management in
relation to the half year review and the year end audit.
The ARC held meetings with the external auditor in the
absence of management to discuss the interim review
and the year end audit findings and processes. The
ARC was satisfied with the internal processes run by
management and their response to challenge by the
external auditor.
88
The ARC carried out a review of the effectiveness
of the external auditor and the external audit process
during the year, led by the Chair of the ARC. This
review included an internally facilitated detailed and
comprehensive evaluation of the Group’s external
auditor and the external audit process using written
survey questionnaires, which were completed by the
executive directors and relevant members of senior
management. Members of the ARC carried out an
externally facilitated review of the Group’s external
auditor and the external audit process during the year
using written survey questionnaires. The results of the
evaluation were shared with the ARC and the external
auditor. A small number of improvement opportunities
were identified and discussed with the external auditor.
Following these reviews and meetings, and after debate
and discussion, the ARC was satisfied with Deloitte’s
performance during the year, that it was objective and
independent, and that the external audit process
remains effective, with no major issues identified. The
ARC has recommended to the Board that a resolution
proposing the appointment of Deloitte be put to
shareholders at the 2023 AGM.
Internal audit
At the beginning of each year, an internal audit plan is
developed by the internal auditor following meetings
with directors and senior managers within the business
and with reference to the significant risks contained
within the Group’s risk register and identified controls.
The ARC approves the internal audit plan for the first
half of the year at the beginning of the year and the
plan for the second half of the year at the June ARC
meeting. The ARC receives updates on progress against
the plan and the recommendations arising from the
internal audits throughout the year, together with
updates on management’s progress against
outstanding actions. The ARC held meetings with the
internal auditor in the absence of management to
discuss the internal audit findings and processes.
The ARC carried out a review of the effectiveness of
the internal audit function and the Company’s risk
management and internal control systems during the
year, led by the Chair of the ARC. This review included
an internally facilitated detailed and comprehensive
evaluation of these matters using written survey
questionnaires, which were completed by the executive
directors and relevant members of senior management.
Members of the ARC carried out an externally facilitated
review of the Group’s internal audit function and the
Company’s risk management and internal control
systems during the year using written survey
questionnaires. The results of the evaluation were
shared with the ARC and the internal auditor.
Following these reviews and meetings, the ARC was
satisfied that the internal audit function was performing
in an effective manner and that the Company’s risk
management and internal control systems were
effective, with no major issues identified.
Audit and Risk Committee evaluation
The ARC carried out a review of the performance and
effectiveness of the ARC during the year, led by the
Chair of the ARC. In line with the 2018 UK Corporate
Governance Code, this year the evaluation was
externally facilitated, having last been externally
facilitated during the year to January 2020. This review
included a detailed and comprehensive evaluation of
the performance and effectiveness of the ARC using
written survey questionnaires, which were completed by
members of the ARC, the Finance Director and the
Company Secretary. The results of the evaluation were
shared with the ARC. Overall, the review found that the
ARC was functioning in an effective manner and
performing satisfactorily, with no major issues identified.
Nick Wharton
Chair of the Audit and Risk Committee
28 March 2023
