Experian 2015 Annual Report Download - page 73

Additional financial reporting internal controls
We have detailed policies and procedures to ensure the accuracy and reliability of our financial reporting and the preparation of
Group financial statements. This includes our comprehensive Group Accounting Manual (‘GAM’), which contains the detailed
requirements of International Financial Reporting Standards (‘IFRS’). The Group’s finance team owns the GAM and we have rolled
it out across the Group, obliging all Experian companies to follow its requirements. The GAM’s aims are to: provide guidance on
accounting issues; enable consistent and well-defined information for IFRS reporting; provide uniform quantitative and qualitative
measures of Group performance; and increase the efficiency of the Group’s reporting process.
Improvements in risk management and internal control
During the year, the FRC replaced its existing Internal Control: Guidance for Directors (2005) and Going concern and Liquidity risks: Guidance
for Directors (2009) with one set of integrated guidance called the Guidance on Risk Management, Internal Control and Related Financial and
Business Reporting. Changes and additions to the UK Corporate Governance Code will guide Experian in formulating a programme of work to
maintain compliance with the Code, and this programme of work will form the basis for a proportion of our risk management activity in 2015
and 2016. The Group also continues with a number of risk management initiatives, including:
• implementing and rolling-out risk management software, to improve risk identification, remediation tracking and drive consistency; and
• rolling-out our Seven Elements of Compliance Management Programme, to help ensure compliance with local laws and regulations and
drive consistency.
Review of risk management and internal control systems
The UK Corporate Governance Code requires companies to review the effectiveness of their risk management and internal control
systems each year. As shown below, the Audit Committee performs this review under delegated authority from the Board.
Independent
assessment
Management
assurance
Through a
combination of
ongoing and
annual reviews,
the Board is
able to review
the ongoing
effectiveness of
the Group’s risk
management and
internal control
systems
Board/Audit
Committee
approved
• Internal audit reports
• Internal audit fraud and confidential helpline reports
• External auditor’s report
• Corporate responsibility independent assurance report
• Review by relevant regulatory bodies
(e.g. US Consumer Financial Protection Bureau)
• Evaluation of external auditor
• Evaluation of Internal Audit
• Annual executive certification of compliance with Turnbull
Guidance and control adequacy
• Risk management reports
• Compliance reports
• Information security reports
• Material litigation reports
• Impairment and going concern reviews
• Annual report and half-yearly financial report review
• Management representation letters
• Annual internal audit plan
• External auditor’s engagement letter
• External auditor’s annual audit plan
• Treasury policy review
• Compliance policy review
• Global Delegated Authority Matrix, which defines internal
approval procedures
Following the review, it is the Board’s view that the information enabled it to review the effectiveness of the Group’s system of internal
control in accordance with the FRC’s ‘Internal Control: Revised Guidance for Directors’ (the ‘Turnbull Guidance’), and that the system has
no significant failings or weaknesses.
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Governance •Corporate governance report