EasyJet 2015 Annual Report Download - page 59

Strategic report Governance Accounts
www.easyJet.com
Main activities and responsibilities of the Committee:
Please refer to the Audit Committee terms of reference for further details on the Committee’s duties and responsibilities, available
in the governance section of easyJet’s corporate website, http://corporate.easyJet.com.
Responsibilities How the Committee has discharged its responsibilities
To monitor and review:
the integrity of the financial statements and related
formal announcements, and the significant financial
reporting issues and judgements which they contain
Review of the financial statements and announcements relating to the financial
performance and governance of the Group at year end and half year.
The Committee also considered the material areas in which significant
judgements have been applied based on reports from both the Group’s
management and the external auditors. Further information is provided
in the Financial reporting and significant financial issues section.
the Company’s risk management systems and
internal control
Review of the adequacy and effectiveness of the Group’s ongoing risk
management systems and control processes, through an evaluation of:
• the risk and assurance plans;
• Internal Audit reports;
• risk assessments;
• information security and business continuity;
• control themes; and
• internal financial control assessments.
the effectiveness of the Company’s Internal Audit
function and its activities
The Committee undertook an assessment of the effectiveness and
independence of the Internal Audit function, which included consideration of:
• key Internal Audit reports;
• stakeholder feedback on the quality of Internal Audit activity;
• Internal Audit’s compliance with prevailing professional standards; and
• closure of Internal Audit recommendations.
Further information is provided in the Internal Audit section.
the Company’s relationship with the external auditors,
including:
• their independence and objectivity;
• the effectiveness of the external audit process;
• recommending the appointment, reappointment
or removal of the external auditors;
• approving their remuneration and terms of
engagement; and
• the policy on the supply of non-audit services.
The Committee considered the appointment of the external auditors,
confirming and assessing their independence, objectivity and effectiveness.
More information on:
• how the effectiveness, independence and objectivity of the external audit
process were assessed, is provided in the External auditors and
effectiveness of external audit process section; and
• the external auditors’ non-audit services, and audit tendering, is provided
in the Non-audit services and the Audit tendering sections respectively.
the adequacy and security of the Group’s
arrangements for its employees and contractors to
raise concerns, in confidence, about possible
wrongdoing in financial reporting or other matters
the Group’s systems and controls for the prevention
of bribery and detection of fraud, including receiving
reports on non-compliance
During the year, the Committee reviewed:
• whistleblower reports;
• reports on anti-bribery and corruption procedures;
• reports on procedures on fraud and loss prevention; and
• reports on credit card fraud monitoring and investigations.
Other duties of the Audit Committee include:
• annually reviewing their terms of reference;
• assessing potential conflicts of interest of Directors
on behalf of the Board; and
• as requested by the Board, providing advice on
whether the annual report and accounts are fair,
balanced and understandable.
The Committee reviewed its terms of reference and concluded that
they did not require updating.
There were no potential conflicts to be considered during the year.
Further information on the Committee’s role on providing advice on whether
the annual report and accounts is fair, balanced and understandable is
provided in the Financial reporting and significant financial issues section.