UNBOUNCE - EXAMPLE PAGE-REPORT-ENTERPRISE DOCUMENT-KINGSPAN - Flipbook - Page 106
Internal audit & compliance
The committee reviewed and agreed
the annual internal audit plan, which
the committee believes is appropriate
to the scope and nature of the Group.
The internal audit plan is risk based,
with all divisions audited every year,
and all new businesses audited within
12 months of acquisition.
The committee reviewed reports
from the Head of Internal Audit &
Compliance at its quarterly meetings.
These reports enable the committee
to monitor the progress of the internal
audit plan, to discuss key findings and
the plan to address them in addition to
status updates of previous key findings.
The committee is responsible for
reviewing the effectiveness of the
internal audit function and does so
based upon discussion with Group
management, the Group’s external
auditor and feedback provided
by divisional management. The
committee was satisfied that the
internal audit function is working
effectively, improves risk management
throughout the Group and that
the internal audit function team
is sufficiently resourced in addition
to having the adequate level of
experience and expertise.
The terms of reference of the Audit &
Compliance Committee were extended
in December 2020 to include oversight
of the processes around product
certification. The Head of Internal
Audit & Compliance also reports to the
committee in this regard.
Risk Management and Internal
controls
The Audit & Compliance Committee
has been delegated, from the Board,
the responsibility for monitoring the
effectiveness of the Group’s system of
risk management and internal control.
The Audit & Compliance Committee
monitors the Group’s risk management
and internal control processes through
detailed discussions with management
and executive directors, the review
102 - 103
and approval of the internal audit
reports, which focus on the areas of
greatest risk to the Group, and the
external audit reports, as part of both
the year end audit and the half year
review process, all of which highlight
the key areas of control weakness in
the Group. All weaknesses identified
by either internal or external audit
are discussed by the committee
with Group management and an
implementation plan for the targeted
improvements to these systems is
put in place. The implementation
plan is overseen by the Group Chief
Financial Officer and the committee
is satisfied that this plan is being
properly executed.
As part of its standing schedule of
business, the committee carried out
an annual risk assessment of the
business to formally identify the key
risks facing the Group. Full details
of this risk assessment and the key
risks identified are set out in the Risks
& Risk Management section of this
Annual Report on pages 48 to 53.
These processes, which are used by
the Audit & Compliance Committee
to monitor the effectiveness of the
Group’s system of risk management
and internal control, are in place
throughout the accounting period
and remain in place up to the date
of approval of this Annual Report.
The main features of the Group’s
internal control and risk management
systems that specifically relate to
the Group’s financial reporting and
accounts consolidation process are
set out in the Corporate Governance
Report on page 75.
Product Compliance and
Certification
With effect from December 2020,
the Audit & Compliance Committee
has responsibility for reviewing the
effectiveness of the processes and
controls associated with product
compliance and monitoring the
culture of compliance across
the Group.
The Audit & Compliance Committee
review reports from the Internal
Audit function which assess the
compliance of the Group’s products
with respect to:
i.
product specific laws and
regulations;
ii. testing;
iii. certification and accreditation;
and
iv. accuracy and consistency
of marketing materials.
The Group Product Compliance
Team, led by the Group Head
of Compliance & Certification,
supports compliance governance
across the Group in implementing
policies, processes, and procedures
to ensure continued improvement
in management systems. The Audit
& Compliance Committee meet
with the Group Head of Compliance
& Certification for updates on
the Group’s compliance and
certification agenda. In particular,
the committee receives updates on
the implementation of the Group
Compliance Management System
which is certified to the ISO 37301
standardised global benchmark.
The Audit & Compliance
Committee also meet regularly
with the Group Head of Internal
Audit & Compliance in relation to
product compliance matters. The
Group Internal Audit Plan includes
specific audit procedures with
respect to product compliance
and certification. The Group Head
of Internal Audit & Compliance
updates the committee on the
findings of all internal audit
assignments, with a specific
focus on product compliance
and certification. Following the
adoption of the Group Marketing
Integrity Manual in September
2021, the Group Internal Audit Plan
also includes specific procedures
to validate compliance with the
Marketing Integrity Manual across
the Group.
