Unilever 2002 Annual Report Download - page 64

Download and view the complete annual report

Please find page 64 of the 2002 Unilever annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 156

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156

Report of the Audit Committee 61
Unilever Annual Report & Accounts and Form 20-F 2002
The role of the Audit Committee is to assist the Unilever
Board in fulfilling its oversight responsibilities regarding the
integrity of Unilever’s financial statements, risk management
and internal control, compliance with legal and regulatory
requirements, the external auditors’ performance,
qualifications and independence, and the performance
of the internal audit function. During the year ended
31 December 2002 the principal activities of the Committee
were as follows:
Financial Statements
The Committee considered reports from the Financial
Director on the quarterly and annual financial statements.
It also reviewed proposed changes in accounting principles
in response to the changes in Netherlands, UK and US law
and UK GAAP.
Audit of the Annual Accounts
PricewaterhouseCoopers, Unilever’s external auditors,
reported in depth to the Committee on the scope and
outcome of the annual audit, and management’s response.
Their reports included accounting matters, governance and
control, and accounting developments.
Risk Management and Internal Control Arrangements
The Committee reviewed Unilever's overall approach to risk
management and control, and its processes, outcomes and
disclosure, including specifically:
•Corporate Audit’s interim and year-end reports on the
Status of Risk Management & Control, and management’s
response.
•The Corporate Risk Committee’s annual report, which
included its recommendation for the Board's statement on
internal control, its analysis of the 2002 risk assessment
process, and the corporate risks identified for 2003.
•The reports from the Code of Business Principles
Compliance Committee.
•Controls over trade marketing investments.
External Auditors
The report from PricewaterhouseCoopers confirming
their independence and objectivity was reviewed by the
Committee. It also reviewed the audit, audit-related, tax and
consulting services provided by PricewaterhouseCoopers,
and compliance with Unilever’s policy, introduced in January
2002, under which the types of engagements for which the
external auditors can be used are prescribed.
The Committee oversaw the external auditor tender process
which was conducted during the year, and made its formal
recommendation to the Board, which was adopted. (See
page 45 for further details of the tender.)
Internal Audit Function
The Committee engaged in discussion and review of the
Corporate Audit Department’s audit plan for the year,
together with its budget and resource requirements.
Audit Committee Charter
The Committee’s charter has been updated to reflect recent
developments in corporate governance in the UK, the
European Union and the US. The revised charter enhances
the Committee’s role and responsibilities, and in particular
makes it responsible for overseeing Unilever’s relations with
the external auditors.
The Audit Committee Charter can be viewed on Unilever’s
external website at www.unilever.com.
Report of the Directors