RWS AR 23 Final Single pages - Flipbook - Page 85
Going concern
External auditor and independence
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 pro昀椀tability and liquidity in
the Group budget for FY24 and beyond and the impact
on the Group’s banking covenants.
The Committee is responsible for assessing the
e昀昀ectiveness 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 non-audit services by the external auditor.
After reviewing the Group’s performance in 2023, 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 at least 12 months from
the date of this report. Given this expectation they
have continued to adopt the going concern basis in
preparing the 昀椀nancial statements.
Internal control and risk management
The risk management process enables the identi昀椀cation,
assessment and prioritisation of risk through discussions
with executive management. The Executive Team and
other delegated senior leadership committees review
risks to ensure that they continue to remain relevant.
A risk that can seriously a昀昀ect 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 a 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 top-down 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.
During the year the Committee reviewed the Group’s
approach to internal control and internal audit. The
Board reviewed the output from the Group’s risk
review process to identify, evaluate and mitigate risks
and considered whether changes in risk pro昀椀le were
complete and adequately addressed.
Further information on risk can be found on pages
44 to 47.
In 2021, Ernst & Young LLP was appointed as the Group’s
auditor following a competitive audit tender process.
The Committee has considered Ernst & Young LLP's
e昀昀ectiveness, 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
meets the external auditor both formally and informally
throughout the year to discuss, amongst other things,
materiality, audit strategy and audit 昀椀ndings. 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 con昀椀rmed its
independence as auditor of the Company. The Audit
Committee assesses external auditor e昀昀ectiveness
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
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 Chairman. For the 昀椀nancial year ended
30 September 2023, the external auditor has provided
£17k of non-audit work for other assurance related
services. Fees paid to Ernst & Young LLP are set out in
Note 5 to the 昀椀nancial statements.
The Committee is satis昀椀ed that the external auditors
remain fully independent, objective and e昀昀ective and
has recommended to the Board that a resolution for the
re-appointment of Ernst & Young LLP should be put to
shareholders at the 2024 AGM.
Gordon Stuart | AUDIT COMMITTEE CHAIRMAN
11 December 2023
GOVERNANCE REPORT
RWS Holdings plc — Annual Report 2023
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