267694 EdinburghIT AR 2024 WEB - Flipbook - Page 36
34 / GOVERNANCE / THE EDINBURGH INVESTMENT TRUST PLC
AUDIT COMMITTEE REPORT
FOR THE YEAR ENDED 31 MARCH 2024
COMMITTEE COMPOSITION AND ROLE
The Audit Committee comprises all the Directors and the
Committee has written terms of reference which clearly
define its objective, authority, composition, roles, duties and
responsibilities, including reporting. The terms of reference
were reviewed during the year, to ensure good practice
and compliance with the AIC Code. They can be inspected
at the registered office of the Company or viewed on the
Company’s website.
AUDIT COMMITTEE RESPONSIBILITIES
The responsibilities of the Audit Committee include:
–
consideration of the integrity of the annual and
half-yearly financial reports prepared by the Manager, the
appropriateness of the accounting policies applied and
any financial judgements and key assumptions, together
with ensuring compliance with relevant statutory and
listing requirements;
–
at the Board’s request, advising it on whether the
Committee believes the annual financial report taken as a
whole is fair, balanced and understandable and provides
the necessary information for shareholders to assess the
Company’s position and performance, business model
and strategy;
–
evaluation of the effectiveness of the internal control
systems and risk management systems, including reports
received on the operational controls of the Company’s
service providers and the Manager’s whistleblowing
arrangements;
–
consideration of the scope of work undertaken by the
Manager’s compliance department, monitoring and
reviewing the effectiveness of the Manager’s and the
Company’s procedures for detecting fraud;
–
management of the relationship with the external auditor,
including evaluation of their reports and the scope,
effectiveness, independence and objectivity of their
audit, as well as making recommendations to the Board
in respect of their appointment, re-appointment and
removal and for the terms of their audit engagement;
–
developing and implementing policy on the engagement
of the external auditor to supply non-audit services; and
–
considering annually whether there is a need for the
Company to have its own internal audit function.
AUDIT COMMITTEE ACTIVITIES
The Committee meets formally at least three times a year to
review the internal financial and non-financial controls and
the contents of the half-yearly and annual financial reports,
including accounting policies and financial judgements. In
addition, the Committee reviews the auditor’s independence,
objectivity and effectiveness, the quality of the services
provided to the Company and, together with the Manager,
reviews the Company’s compliance with financial reporting
and regulatory requirements as well as risk management
processes. Representatives of the Manager’s Compliance
Department attend at least two meetings each year.
Representatives of the auditor attend the Committee
meetings at which the draft half-yearly and annual financial
reports are reviewed and are given the opportunity to speak
to Committee members in the absence of representatives of
the Manager.
The external audit programme and timetable are drawn up
and agreed with the auditor in advance of the end of the
financial year and matters for audit focus are discussed and
agreed. The auditor ensures that these matters are given
particular attention during the audit process and reports
on them, and other matters as required, in its report to the
Committee. In addition, the Committee reviews any material
issues raised by the auditor. There have been no such
issues raised during the year. The auditor’s report, together
with reports from the Manager, the Manager’s Compliance
Department and the depositary, form the basis of the
Committee’s consideration and discussions with the various
parties and any recommendations to the Board, including
the Committee’s recommendation to sign the 2024 financial
statements.
