Here you will find the Terms of Reference for the Audit and Risk Process Committee.
(a) To consider the appointment of the external auditor and assess independence of the external auditor, ensuring that key partners are rotated at appropriate intervals.
(b) To recommend the audit fee to the Board of Trustees and pre-approve any fees in respect of non-audit services provided by the external auditor and to ensure that the provision of non-audit services does not impair the external auditors’ independence or objectivity.
(c) To discuss with the external auditor, before the audit commences, the nature and scope of the audit and to review the auditors’ quality control procedures and steps taken by the auditor to respond to changes in regulatory and other requirements.
(d) To oversee the process for selecting the external auditor and make appropriate recommendations to the Board of Trustees.
(e) To review and advise on the external auditor’s management letter and management’s response.
(f) To review and approve the internal audit programme and ensure that the internal audit function is adequately resourced and has appropriate standing within the IET.
(g) To consider management’s response to any major external or internal audit recommendations.
(h) To consider management’s recommendation for the appointment or dismissal of the head of internal audit.
(i) To review and advise on the adequacy and security of the IET’s procedures for its employees and contractors to raise concerns, in confidence, about possible wrongdoing in financial reporting and other matters. The Committee shall ensure that these arrangements allow proportionate and independent investigation of such matters and follow up action.
(j) To review and advise on management’s and the internal auditor’s reports on the effectiveness of systems for internal financial control, financial reporting and risk management.
(k) To review and advise on the IET’s procedures for detecting fraud.
(l) To review and advise on the IET’s procedures for the prevention of bribery.
(m) To review and advise on the remit of the risk management function and ensure that it is adequately resourced and has appropriate standing within the IET.
(n) To review, and challenge where necessary, the actions and judgements of management, in relation to the annual financial statements before submission to the Board of Trustees, paying particular attention to:
(i) critical accounting policies and practices, and any changes in them;
(ii) decisions requiring a major element of judgment;
(iii) the extent to which the financial statements are affected by any unusual transactions in the year and how they are disclosed;
(iv) the clarity of disclosures;
(v) significant adjustments resulting from the audit;
(vi) the going concern assumption;
(vii) compliance with accounting standards;
(viii) compliance with legal requirements;
(ix) reviewing the IET’s statement on internal financial control, financial reporting and risk management prior to endorsement by the Board of Trustees and reviewing the policies and process for identifying and assessing business risks and the management of those risks by the IET;
(x) any other matters relevant to the financial well-being of the IET.
(o) To discuss with the external auditor any problems and reservations arising from the interim and final audits and any matters the auditor may wish to discuss (in the absence of management where necessary).
(p) To oversee and advise the Board of Trustees on the current risk exposures of the IET.
(q) To review and advise on the IET’s capability to identify and manage new risk types.
(r) To review and advise on reports on any material breaches of risk limits and the adequacy of proposed action.
(s) To ensure compliance with Delegated Authorisations which should be monitored by the Honorary Treasurer.
(t) To be the primary interface on behalf of the IET with the Charity Commission on any investigation or enquiry into IET’s financial affairs.
(u) To consider other topics, as defined by the Board of Trustees.
(v) To seek any information that the Committee requires from any employee of the IET Group.
(w) To obtain external legal or independent professional advice and to invite such advisors to attend meetings as necessary.
(x) To report to the Board of Trustees.