Page 43 - RFU Annual Report 2018

4
CORPORATE GOVERNANCE

1

Internal audit External auditors Evaluation of the Audit Committee
Internal audit is an independent and Following the recommendation of the The Committee carried out an
objective assurance function which Committee, the Directors proposed the assessment of its own performance
aims to assess and improve the RFU’s re-appointment of Mazars as the Group’s during the year. While overall the
overall control framework. Internal external auditors for 2018. Members members concluded that the Committee
audit at the RFU is undertaken by approved the appointment of Mazars at is performing effectively, they requested
RSM, an independent accountancy the AGM on the 8th June 2018. that more information be provided
firm. The Audit Committee defines the by management on key topics, and
responsibility and scope of the internal Both the RFU and Mazars have that meetings be extended to allow
audit function and approves its annual safeguards in place to avoid the further time for discussion of key
plan. possibility that the external auditor’s topics. It was agreed that the number
objectivity and independence could be of Audit Committee meetings should
During the year, the Committee compromised, such as audit partner be increased to four per annum going
evaluated the performance of the rotation and the restriction of non-audit forward.
internal auditors and was satisfied with services that the external auditors can
their effectiveness. perform. The Committee reviewed the Consolidated financial statements
report from Mazars on the actions they The Committee recommended to the
Audit of the Annual Financial take to comply with the professional Board of Directors, and the Board has
Statements and regulatory requirements and approved, that the audited consolidated
The external auditors, Mazars, reported best practice designed to ensure their financial statements be included in the
in depth to the Committee on the independence from the RFU. The Annual Report for the year ended 30
scope and outcome of the annual Committee was satisfied with Mazars’ June 2018.
audit. This reporting included their independence.
significant findings, internal control
recommendations and summary of During the year, Mazars did not carry
misstatements. out any work for the RFU, apart from the
external audit.
The Committee held independent
meetings with the external auditors Mazars have been external auditors
during the year and reviewed and for the RFU since 2006, with a partner
agreed their audit plan. The Committee rotation in 2012. The last tender for the
discussed the views and conclusions audit of the annual accounts was carried
of Mazars regarding management’s out in 2014.
treatment of significant transactions
and areas of judgement during the year
and Mazars confirmed that they were
satisfied that these had been treated
appropriately in the financial statements.
In particular, the Committee focussed on
areas of potential disagreement between
management and the external auditors
and how these had been resolved.

Annual
Report
2018