Carphone Warehouse 2004 Annual Report Download - page 21

The Board receives comprehensive monthly information including
financial and business performance showing variances against budget
and key performance indicators.
Capital expenditure is subject to the disciplines of appraisal and
approval by appropriate levels of management.
The Audit Committee acts under delegated authority from the Board
and is responsible for reviewing the adequacy and effectiveness of the
systems of internal control throughout the Group. During the period
it was assisted in this work by the risk management team, covering
systems of internal control in the Group’s substantive business units
and issues relating to the Group’s central support functions.
There is a continuous process for identifying, evaluating and managing
the significant risks faced by the Group. This process has been in place
for the period under review and up to the date of approval of the Annual
Report and Accounts. This process is reviewed annually by the Board.
The process includes the following:
• Review of the external and internal audit work plans;
• Regular review by the Board of a detailed risk management report;
• Consideration of reports from management and internal audit on
the systems of internal control and any material control weaknesses;
• Discussions with management on the actions taken on areas identified
either by the Board or by internal or external audit or risk reports;
• Consideration of the performance of internal audit or the risk
management team together with an annual review of its resourcing,
skills and terms of reference; and
• Consideration of the appropriate Audit Committee minutes and
reporting of significant issues through the Audit Committee Chairman
to the Board.
Auditors
During the period the Group has had safeguards to ensure that the
objectivity and independence of its auditors cannot be compromised.
In particular, the Group’s procedures in respect of services provided
by Deloitte & Touche LLP are:
• Audit related services – these are areas of the Group’s work that,
in their position as the Group’s auditors, Deloitte & Touche LLP are
best placed to undertake. Such work includes formalities relating to
borrowings, shareholder and other circulars, various other regulatory
reports and work in respect of acquisitions and disposals.
• Tax consulting – the Group uses Deloitte & Touche LLP for certain tax
consulting projects, while other tax advice and services are provided
by other parties with experience in the relevant area.
• General consulting – all significant general consulting projects are
subject to Audit Committee review and approval. Deloitte & Touche
LLP are only permitted to tender when the Audit Committee and
Deloitte & Touche LLP are satisfied that the nature of the work
presents no potential threat to the independence of the audit team.
These safeguards have been approved by the Audit Committee
and are regularly reviewed and updated in the light of internal and
external developments.
Deloitte & Touche LLP report to the Directors and the Audit Committee
on the actions they take to comply with relevant professional and
regulatory requirements and best practice to ensure their independence
from the Group.
The Carphone Warehouse Group PLC Annual Report 2004
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