Aviva 2007 Annual Report Download - page 92
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Please find page 92 of the 2007 Aviva 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.This report provides details of the role of the Audit
Committee and the work it has undertaken during the
year. The purpose of the Committee is to assist the Board
in discharging its responsibilities for the integrity of the
Company’s financial statements, the assessment of the
effectiveness of the systems of internal financial controls
and monitoring the effectiveness and objectivity of the
internal and external auditors. The full terms of reference
for the Committee can be found on the Company’s
website, www.aviva.com, and are available from the
Group Company Secretary.
The following independent non-executive directors,
served on the Committee during the year:
Period
Member From To
Russell Walls
(Chairman from 1 January 2007) 1 July 2004 To date
Mary Francis 1 January 2007 To date
Richard Karl Goeltz 1 July 2004 To date
Carole Piwnica 24 September 2003 To date
The Committee met on six occasions in 2007 and each
member attended every meeting. In addition, the
Committee held separate meetings with members of
senior management for the purpose of induction and
training. The Group Company Secretary acts as the
secretary to the Committee. Russell Walls, a Fellow
Chartered Certified Accountant, is a former Group Finance
Director of BAA plc, Wellcome plc and Coats Viyella plc.
Richard Karl Goeltz is a former Chief Financial Officer of
American Express Company, NatWest Group plc and The
Seagram Company Ltd. The Board is satisfied that these
directors have recent and relevant financial experience.
The Group Chief Executive, Group Finance Director,
Group Audit Director, Group Chief Accountant and
the external auditor normally attend, by invitation,
all meetings of the Committee. Other members of senior
management are also invited to attend as appropriate
to present reports. It is the Committee’s practice at
each meeting to meet separately with the Group Audit
Director and the external auditor without any members
of management being present. In performing its duties,
the Committee has access to the services of the Group
Audit Director, the Group Company Secretary and
external professional advice.
The Committee follows an agreed annual work plan.
It reviews, with members of management and the
internal and external auditors, the Company’s financial
announcements including the annual report and accounts
to shareholders and associated documentation. It places
particular emphasis on their fair presentation and the
reasonableness of the judgemental factors and
appropriateness of significant accounting policies used
in their preparation. At each meeting, the Committee
receives a report from the Group Audit Director
concerning the Company’s systems of internal financial
control, including any significant new issues and actions
taken on previously reported issues. Twice each year,
the Committee receives reports on the adequacy of the
Group’s life assurance and general insurance reserves.
The Committee also reviews the annual work plan for
the Group’s internal audit function. The Committee
reports to the Board regarding the effectiveness of the
Group’s overall systems of internal control. The Committee
itself reviews the financial controls and works closely
with the Risk and Regulatory Committee, which reviews
the non-financial controls.
During the Board’s visit to the Group’s North American
operations in September 2007, the Committee held joint
meetings with the Risk and Regulatory Committee and
members of the local business unit audit committees.
The meetings allowed the Committee to gain a deeper
understanding of the relevant local issues and assess the
effectiveness of the systems of internal financial controls
and the effectiveness and objectivity of the internal and
external auditors.
In addition, the Committee reviewed the Group’s capital
and risk frameworks against the regulatory reforms
incorporated in the Financial Services Authority’s Prudential
Sourcebook (PSB) concerning the Group’s individual
capital assessments (ICA). The Committee endorsed the
proposed assumptions, methodology and process followed
in determining the amount of capital required to support
the Group’s business plans and recommended the ICA
to the Board for approval.
Each of the Group’s major business units has an
audit committee that provides an oversight role for its
business. All such committees include members who are
independent of the relevant business. The Group Audit
Director reviews the papers and minutes from these
committees and brings all significant matters to the
Committee’s attention. In 2007 the Committee made
contact with the chairmen of the local audit committees
and some members attended local committee meetings.
The Committee receives reports from the external
auditor and regularly holds discussions with both
the internal and external auditors in the absence
of management. The chairman of the Committee
reports to the subsequent meeting of the Board on
the Committee’s work and the Board receives a copy
of the minutes of each meeting of the Committee.
Aviva plc
Annual Report and
Accounts 2007
88
Governance
Audit Committee report