Strategic report Governance Financial statements Other information AUDIT COMMITTEE REPORT ENSURING THE CONTINUED INTEGRITY OF THE GROUP Dear Shareholder Ensuring oversight of financial As Chair of the Audit Committee, I am pleased to present this reporting and the control report on the Committee’s activities in the year under review. environment. The Committee’s focus during this period has been on financial reporting and the maintenance of the Group’s internal control framework particularly in the context of the COVID-19 pandemic . Role of the Audit Committee In carrying out its oversight of the Group’s financial reporting The Committee assists the Board in ensuring that the interests during the year, the Committee has paid particular attention to the of the Company’s shareholders are protected in relation to the root causes of internal audit issues, the development of audit and Group’s financial reporting and internal controls. The Board corporate governance reform and the revised methodology for delegates responsibility to the Committee to monitor the integrity intercompany recharges. of the Group’s financial reporting and the processes and controls The Committee has continued to oversee the effectiveness and that support it. This includes reviewing and challenging the independence of the external auditor. This year’s audit is the first appropriateness of accounting policies, significant issues and for Darren Meek our new lead audit partner, who shadowed Alex judgements, and the assumptions in support of the Company’s Bertolotti during last year’s audit. Darren can serve for a further ability to continue as a going concern and its longer-term viability. four years subject to the outcome of the tender process we are A key aspect of the Committee’s role in ensuring the integrity of Attendance at Committee meetings during the year to 30 June 2021 required to undertake for the external audit mandate for the the financial reporting is its oversight of the Group’s relationship financial years after 30 June 2023. with the external auditor. This includes making recommendations Eligible Attended to the Board in relation to the appointment of the external auditor, Member Position meetings meetings Elsewhere, the Committee has continued to oversee the Roger Perkin Chair effectiveness and ongoing improvements being made to the approving its scope of work, fees and terms of engagement, •••••• •••••• as well as regularly reviewing its independence, objectivity Independent Group’s internal controls, particularly around the CASS assurance and effectiveness. Andrea Blance Non-Executive Director ••••• ••••• framework, as well as overseeing and receiving assurance from Independent the Group’s Internal Audit function. More broadly, the Group’s internal control framework is an essential John Troiano Non-Executive Director ••••• ••••• part of ensuring the integrity of its financial reporting and other Independent I will be available to answer any questions at the AGM. If there business operations. The Committee oversees the effectiveness Fiona Clutterbuck Non-Executive Director •• •• are government measures in force restricting physical public Stephen Independent gatherings at the time of the AGM and limiting shareholders’ ability of, and ongoing improvements to, the Group’s internal controls, Robertson Non-Executive Director •• •• to attend and ask questions then, as in 2020, shareholders will be as well as having responsibility for monitoring and reviewing the invited to send questions to our company secretarial team by effectiveness of the Group’s Internal Audit function, which email. Further details will be set out in the Notice of AGM. provides assurance on those controls. The detailed responsibilities of the Committee are set out in its terms of reference, which are available on the Group’s website at www.hl.co.uk/about-us/board-of-directors. This report provides an overview of how the Committee has discharged its responsibilities during the period under review. 81 Hargreaves Lansdown Report and Financial Statements 2021