Experian 2014 Annual Report Download - page 78

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AUDIT COMMITTEE REPORT
Current members
Alan Jebson (Chairman)
Fabiola Arredondo
Jan Babiak
Roger Davis
Deirdre Mahlan
George Rose
Sir Alan Rudge
Paul Walker
Primary roles
• To monitor the integrity of the
financial statements.
• To review the effectiveness of the
system of internal control, including
the risk management system.
• To review the effectiveness of
the audit process and the
independence and objectivity
of the external auditors.
• To monitor and review the
effectiveness of the internal
audit function.
• To develop and monitor policy on the
external auditors providing non-audit
services.
• To approve the external
auditors’ remuneration and
terms of engagement, and
make recommendations about
their re-appointment.
Governance
The Audit Committee was in place
throughout the year ended 31 March 2014.
It met five times, with meetings held to
coincide with key dates in the financial
reporting and audit cycle. The Board
considers all members of the Committee to
be independent non-executive directors, in
compliance with provision C.3.1 of the UK
Corporate Governance Code.
The Chairman and the other directors
attend meetings by invitation. Other
regular attendees include the General
Counsel and the Head of Global
Internal Audit. Representatives from
PricewaterhouseCoopers LLP, including
the lead audit partner, attend Committee
meetings. At each meeting, the
Committee meets the external auditors
and the Head of Global Internal Audit
without management present.
In terms of recent and relevant financial
experience, the Committee includes
Deirdre Mahlan, the current Chief
Financial Officer of Diageo plc, and
George Rose, former Group Finance
Director of BAE Systems plc and
chairman of the audit committee of
Genel Energy plc and Laing O’Rourke plc.
The Board considers that the Committee
members’ collective international
experience enables them to act as an
effective committee. The Committee has
access to the financial expertise within
the Group and the external auditors, and
the Chairman of the Audit Committee is
in regular contact with key members of
senior management.
Activities
The ways in which the Committee
discharged its responsibilities during
the year ended 31 March 2014 included:
• Reviewing the 2013 preliminary and
2014 half-year results announcements
and the 2013 annual report and
financial statements. The Committee
also reviewed impairment papers,
as required by IAS 36, and papers
supporting the preparation of relevant
financial statements on a going
concern basis. For more information
on the matters considered in relation to
the going concern assessment, please
see the Financial review section.
• Agreeing the 2014 audit plan with
the external auditors and noting
their risk assessment of the Group,
relative to other clients and the
FTSE 100 generally. The external
auditors confirmed their plans to
improve the alignment of the audit
with the Group’s strategic aims. The
Committee also noted the auditors’
plans to extend the use of technology-
enabled audit techniques, the risk
areas to be covered by the audit and
the materiality levels to be applied.
• Receiving updates on the audit
process from the external auditors,
which included details of the
audit’s status, key matters arising
from the audit and assessments
of management’s judgments on
them, reviewing the content of
the independence letter and the
management representation letter, as
well as engagement terms.
• Receiving, at each meeting,
an update from the internal
audit function, including work
performed, progress against
the annual plan, staffing and
details of actions required by the
Committee. The Committee also
spent time considering specific
operational matters initially raised
by internal audit – the Committee
agreed appropriate actions with
input from senior management
and external advisers, and made
recommendations to the Board. The
Committee reviewed and approved
the annual internal audit plan, and
reviewed an evaluation of internal
audit in detail.
• Reviewing a variety of reports on
risk – as more fully described in the
Protecting our business section of
the annual report. This included a
regular material litigation update,
with a focus this year on claims
received in Brazil, relating to the
disclosure and use of credit scores.
• Receiving a fraud and whistleblowing
update, and agreeing to receive these
reports more frequently.
Alan Jebson
Chairman
Corporate governance report continued
Governance • Corporate governance report