The Edinburgh Investment Trust Plc Annual Financial Report 2022 - Flipbook - Page 34
32 / GOVERNANCE / THE EDINBURGH INVESTMENT TRUST PLC
Audit Committee Report
For the year ended 31 March 2022
COMMITTEE COMPOSITION AND ROLE
AUDIT COMMITTEE ACTIVITIES
The Audit Committee comprises all the Directors and the
Committee has written terms of reference which clearly define its
authority, meetings, duties and reporting. These were reviewed
during the year, to ensure good practice and compliance with the
latest AIC Code. They can be inspected at the registered office of
the Company or viewed on the Company’s website.
The Committee meets at least twice a year to review the internal
financial and non-financial controls and, when applicable, the
contents of the half-yearly and annual financial reports, including
accounting policies. In addition, the Committee reviews the
auditor’s independence, objectivity and effectiveness, the
quality of the services provided to the Company and, together
with the Manager, reviews the Company’s compliance with
financial reporting and regulatory requirements as well as risk
management processes. Representatives of the Manager’s
Compliance Department attend at least two meetings each year.
Representatives of the auditor attend the Committee meetings
at which the draft half-yearly and annual financial reports are
reviewed and are given the opportunity to speak to Committee
members in the absence of representatives of the Manager.
AUDIT COMMITTEE RESPONSIBILITIES
The responsibilities of the Audit Committee include:
–
consideration of the integrity of the annual and halfyearly financial reports prepared by the Manager, the
appropriateness of the accounting policies applied and any
financial judgements and key assumptions, together with
ensuring compliance with relevant statutory and listing
requirements;
–
at the Board’s request, advising it on whether the Committee
believes the annual financial report taken as a whole is fair,
balanced and understandable and provides the necessary
information for shareholders to assess the Company’s position
and performance, business model and strategy;
–
evaluation of the effectiveness of the internal control systems
and risk management systems, including reports received on
the operational controls of the Company’s service providers
and the Manager’s whistleblowing arrangements;
–
consideration of the scope of work undertaken by the
Manager’s compliance department, monitoring and reviewing
the effectiveness of the Manager’s and the Company’s
procedures for detecting fraud;
–
management of the relationship with the external auditor,
including evaluation of their reports and the scope,
effectiveness, independence and objectivity of their audit, as
well as making recommendations to the Board in respect of
their appointment, re-appointment and removal and for the
terms of their audit engagement;
–
developing and implementing policy on the engagement of
the external auditor to supply non-audit services; and
–
considering annually whether there is a need for the Company
to have its own internal audit function.
The external audit programme and timetable are drawn up and
agreed with the auditor in advance of the end of the financial
period and matters for audit focus are discussed and agreed.
The auditor ensures that these matters are given particular
attention during the audit process and reports on them, and other
matters as required, in its report to the Committee. In addition,
the Committee reviews any material issues raised by the auditor.
There have been no such issues raised during the year. The
auditor’s report, together with reports from the Manager, the
Manager’s Compliance Department and the depositary, form the
basis of the Committee’s consideration and discussions with the
various parties and any recommendations to the Board, including
the Committee’s recommendation to sign the 2022 financial
statements.