Twenty-First Century Fox 2004 Annual Report Download - page 51

•Guidelines and limits for approval of capital expenditures and investments;
• Policies and procedures for the management of financial risk and treasury operations; and
• Standards of Business Conduct, as discussed in the following section, which are applicable to all employees.
Certain risks cannot be mitigated to an acceptable level by internal controls. Such risks are transferred to third parties in
the international insurance markets to the extent considered appropriate.
An internal audit function operates under a Charter which defines the purpose, authority and responsibility of the
Corporate Audit Department. The Corporate Audit Department’s mission is to provide an independent assessment of risk
and the effectiveness of internal operating and financial controls within the Group’s various operating businesses.
The areas of emphasis for the conduct of the assessment include the:
• adequacy, appropriateness and effectiveness of accounting and operating controls;
• extent of compliance with Group policies and procedures;
• accuracy of and security over data and information;
• accountability for the Group’s assets to safeguard against loss;
• adequacy of reviews made by the operating companies to ensure an effective internal control environment is fostered;
and
• economy and efficiency with which resources are employed.
The results of each audit and agreed-upon management action plan are reported on a timely basis to the management
responsible for implementing changes.
The Corporate Audit Department reports to the Group’s Audit Committee and meets with them at least four times a year to
review the annual Internal Audit Plan and the results of its activities.
The activities of the Corporate Audit Department are separate and distinct from the external auditors. However, active
coordination between the two groups is recognised as essential in order to maximise the Group’s return on investment for
audit services.
The full text of the Charter of the Corporate Audit Department is available on the Group’s website.
Ethical Standards
At a Board meeting on 27 February, 1996, the Board adopted “Standards of Business Conduct” which were revised in May
2004. The full text of the Standards may be found on the Group’s website. The Standards confirm the Group’s policy to
conduct its affairs in compliance with all applicable laws and regulations and observe the highest standards of business
ethics. The Group intends that the spirit, as well as the letter of those standards is followed by all Directors, officers and
employees of the Group, its subsidiaries and divisions. This is communicated to each new Director, officer and employee and
has already been communicated to those in positions at the time the Standards were adopted. The Standards deal with the
following main areas:
• corporate assets and information:
(a) Group funds and property;
(b) corporate records and accounting;
(c) confidential and proprietary information;
(d) insider trading;
(e) legal disputes;
• conflicts of interest;
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NEWS CORPORATION CONCISE REPORT 2004
Statement of Corporate Governance
(continued)
for the year ended 30 June, 2004