Vodafone 2004 Annual Report Download - page 55

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Annual Report 2004 Vodafone Group Plc
53
Report from the Audit Committee
The composition and terms of reference of the Audit Committee is discussed under
“Committees of the Board”.
During the year ended 31 March 2004 the principal activities of the Committee were
as follows:
Financial Statements
The Committee considered reports from the Financial Director and the Group
Financial Controller on the interim results, preliminary announcement and Annual
Report. It also considered reports from the external auditors, Deloitte & Touche LLP,
on the scope and outcome of the review of interim results and annual audit.
The financial statements were reviewed in the light of these reports and the results
of that review reported to the Board.
Risk Management and Internal Control
The Committee reviewed the process by which the Group evaluated its control
environment and its risk assessment process, and the way in which significant
business risks were managed. It also considered the Group Audit department’s
reports on the effectiveness of internal controls, significant frauds and any fraud that
involved management or employees with a significant role in internal controls.
The Committee also reviewed and approved arrangements by which staff could in
confidence raise concerns about possible improprieties in matters of financial
reporting or other matters. This was achieved through using existing reporting
procedures and introducing a website with a dedicated anonymous email feature.
External Auditors
The Committee reviewed the letter from Deloitte & Touche LLP confirming their
independence and objectivity. It also reviewed and pre-approved the scope of non-
audit services provided by Deloitte & Touche LLP to ensure that there was no
impairment of independence.
The Committee pre-approved the scope and fees for audit services provided by
Deloitte & Touche LLP and confirmed the wording of the recommendations put by
the Board to the shareholders on the appointment and retention of the external
auditors.
Private meetings were held with Deloitte & Touche LLP to ensure that there were no
restrictions on the scope of their audit and to discuss any items the auditors did not
wish to raise with management present.
Internal Audit
The Committee engaged in discussion and review of the Group Audit department’s
audit plan for the year, together with its resource requirements. Private meetings
were held with the Group Audit Director.
Audit Committee Effectiveness
The Audit Committee conducts a formal review of its effectiveness annually and
concluded this year that it was effective and able to fulfil its terms of reference.
/s/
Paul Hazen On behalf of the Audit Committee