The Edinburgh Investment Trust Plc Annual Financial Report 2022 - Flipbook - Page 36
34 / GOVERNANCE / THE EDINBURGH INVESTMENT TRUST PLC
Audit Committee Report / continued
AUDITOR
INTERNAL AUDIT
PwC were appointed as the Company’s Auditors at the AGM on
25 July 2019 and were re-appointed on 22 July 2021. After due
consideration, the Committee recommends the re-appointment
of PwC and their re-appointment will be put forward to the
Company’s shareholders at the 2022 AGM.
The Company, being an externally managed investment company
with no employees, does not require its own specific internal
audit function but relies on the control environment of the
Manager which itself is subject to routine external independent
reviews.
INTERNAL CONTROLS AND RISK MANAGEMENT
COMMITTEE EVALUATION
The Committee undertakes a robust assessment of the risks to
which the Company is exposed by reference to a risk control
summary, which maps the risks, mitigating controls in place
and relevant information reported to the Directors, throughout
the year. The resultant ratings of the mitigated risks allow
the Directors to concentrate on those risks that are most
significant and also form the basis of the list of principal risks and
uncertainties set out in the Strategic Report on pages 19 to 21.
The Committee’s activities fell within the scope of the review
of Board effectiveness performed in the year. Details of this
process can be found under ‘Board, Committee and Directors’
Performance Appraisal’ on page 37.
The Committee, on behalf of the Board, is responsible for
ensuring that the Company maintains a sound system of
internal control to mitigate risk and safeguard the Company’s
assets. The effectiveness of the Company’s system of internal
controls, including financial, operational and compliance and risk
management systems, is reviewed at least annually. Appropriate
action is taken to remedy any significant failings or weaknesses
identified from these reviews. No significant items were identified
in the year. As part of this, the Committee receives and considers,
together with representatives of the Manager, reports in
relation to the operational controls of the Manager, accounting
administrator, custodian, company secretary and registrar. These
reviews identified no issues of significance during the year.
STEVE BALDWIN / CHAIRMAN OF THE AUDIT
COMMITTEE / 25 MAY 2022