RISKS A ND RIS K MA N AG E M E N T
RI S K MAN AGEMENT CONTINUED
P ROCES S FOR P REPA RING CONS OLIDAT E D FINA NCIA L STAT EMENT S The Group has established internal control and risk management systems in relation to the process for preparing consolidated financial statements. The key features of these systems are:
INTERNAL CONTROL AND INTERNAL AUDIT The Board is responsible for the Group’s system of internal control and for reviewing its effectiveness. The table below summarises the Group’s system: Board
Audit and Risk Committee
• Collective responsibility for internal control.
• Oversees effectiveness of internal control process.
• Formal list of matters reserved for decision by the Board.
• Receives reports from external auditor.
• Control framework setting out responsibilities.
• Approves independent internal audit programme.
• Approval of key policies and procedures. • Monitors performance.
• Receives reports generated through the internal audit programme.
Executive Board
Internal Auditor
• Responsible for operating within the control framework.
• Provides assurance to the Audit and Risk Committee through independent reviews of agreed risk areas.
• Reviews and monitors compliance with policies and procedures. • Recommends changes to controls/policies where needed. • Monitors performance. The Audit and Risk Committee has oversight of the system of internal controls and of the internal audit programme and receives the report of the external auditor following the annual statutory audit. For further details please see the Audit and Risk Committee Report on page 112. G OV ERNA NCE P 7 9
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It should be noted that internal control systems such as this are designed to manage rather than eliminate the risk of failure to achieve business objectives and can provide only reasonable, and not absolute, assurance against material loss or accounting misstatement. A U D I T AN D RI SK CO M MI TTE E RE PO RT P 1 1 2
Dunelm Annual Report & Accounts 2020
• Management regularly monitors and considers developments in accounting regulations and best practice in financial reporting and, where appropriate, reflects developments in the consolidated financial statements. The external auditor also keeps the Audit and Risk Committee appraised of these developments. • The Audit and Risk Committee and the Board review the draft consolidated financial statements. The Audit and Risk Committee receives reports from management and the external auditor on significant judgements, changes in accounting policies, changes in accounting estimates and other pertinent matters relating to the consolidated financial statements, and provides robust and independent challenge to management where appropriate. • The full year financial statements are subject to external audit and the half year financial statements are reviewed by the external auditor.
