41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 123
STRATEGIC REPORT
GOVERNANCE
The Audit & Risk Committee also reviewed and challenged
the external auditor’s report on these financial statements.
As discussed above, the effectiveness of the external
audit function was considered during 2022. During the
evaluation process the Audit & Risk Committee considered:
the independence and objectivity of the external auditor;
the make-up and quality of the audit team; the proposed
audit approach and the scope of the audit; the execution
of the audit and the quality of the audit report to the
shareholders; as well as ultimately the fee structure.
FINANCIAL STATEMENTS
OTHER INFORMATION
The Audit & Risk Committee’s assessment of the Annual
Report to ensure that it is fair, balanced and understandable
and took into account the following considerations:
•
A review of what fair, balanced and understandable
means for Unite.
•
The high level of input from the Chief Executive Officer
and Chief Financial Officer with early opportunities for
the Board to review and comment on the Annual Report.
•
The Audit & Risk Committee discussed reports from
Group Risk & Assurance and its audit and assessment of
the control environment. The Committee reviewed and
proposed areas of focus for the internal audit programme
to review including the approach to ensure that the internal
audit activity continues to be aligned to the principal
Group risks.
Ensuring consistency in the reporting of the Group’s
performance and management information (as
described on pages 24–29), risk reviews (as described on
pages 77–87), business model and strategy (as described
on pages 8–11 and 30–31).
•
A cross-check between Board Minutes and the Annual
Report is undertaken to ensure that reporting is
balanced.
•
The Audit & Risk Committee has considered the
Department for Business, Energy & Industrial Strategy
(BEIS) consultation white paper: “Restoring trust in audit
and corporate governance” published in March 2021
and the Government’s response to the consultation
responses published in May 2022. The Queen’s Speech
on May 10th 2022 included plans for a Draft Audit Reform
Bill and whilst there is no timetable setting out when the
Bill will be published, the Audit & Risk Committee will
continue to review the potential impact on the Group
with management.
Whether information is presented in a clear and concise
manner, illustrated by appropriate KPIs to facilitate
shareholders’ access to relevant information.
To aid our review, the Audit & Risk Committee considers
reports from the Group Finance Director and reports from
the external auditor on the outcomes of their half-year
review and annual audit. As an Audit & Risk Committee, we
support Deloitte in displaying the necessary professional
scepticism its role requires.
Financial reporting
The primary focus of the Audit & Risk Committee, in relation
to financial reporting in respect of the year ended 31
December 2022, was to review with both management and
the external auditor the appropriateness of the half-year
and annual financial statements concentrating on:
•
The quality and acceptability of accounting policies
and practices.
•
The clarity of the disclosures and compliance with
financial reporting standards and relevant financial
and governance reporting requirements.
•
Material areas in which significant judgements have
been applied or where there has been discussion with
the external auditor.
•
Whether the Annual Report and Accounts, taken as a
whole, is fair, balanced and understandable and provides
the information necessary for shareholders to assess
the Group’s position and performance, business model
and strategy.
Significant issues considered by the Committee
After discussion with both management and the external
auditor, the Committee determined that the key risk of
misstatement of the Group’s 2022 financial statements
related to:
•
•
Property valuations
Joint venture accounting
Further information about property valuations can be
found below and joint venture accounting can be found
on the next page.
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