Strategic report Governance Financial statements Other information AUDIT COMMITTEE REPORT CONTINUED Composition and meeting attendance The Committee met six times in the period under review. Financial statements Roger Perkin (as Chair), Andrea Blance and John Troiano, each The attendance of members at meetings across the year is set The Committee is responsible for monitoring the integrity of the of whom is an independent Non-Executive Director, are the out in the table on page 81. Other individuals attend Committee Group’s financial statements, including its interim and full year members of the Committee as at the date of this report. meetings at the request of the Committee Chair. This will usually results. Where practicable, and consistent with regulatory Roger Perkin was a member throughout the period under review. include the Chair of the Board, the Chief Financial Officer, the requirements, it also reviews other statements requiring Board Andrea Blance became a member upon her appointment as a Chief Internal Auditor and the external auditor. The Committee approval which contain financial information. Non-Executive Director. John Troiano became a member on has access to the Group Company Secretary, who also acts as In carrying out this role, the Committee reviews and challenges 1 September 2020. Fiona Clutterbuck and Stephen Robertson secretary to the Committee. The Committee is authorised to the application of significant accounting policies across the Group were members of the Committee until their resignations as obtain independent professional advice where it considers it that feed into its financial statements, and the methods used to Non-Executive Directors on 8 October 2020. Andrea Blance and necessary. Due to government restrictions arising as a result of account for significant or unusual transactions. Significant John Troiano were each provided with an induction prior to joining COVID-19 the Committee has been meeting remotely throughout examples considered by the Committee during the period include: the Audit Committee which was tailored to their respective needs. the period under review. The Committee does not consider that Committee appointments are made for three-year terms and can these alternative arrangements have had any impact on its ability •The application of IAS 38 (Intangible Assets) in relation to the be extended for no more than two additional three-year terms, to operate effectively and discharge its obligations. amounts held by the Group’s subsidiaries including internally provided that the member remains independent. Committee developed software and goodwill; and membership is regularly reviewed by the Committee Chair, Overview of the Committee’s activities in the year to •The requirements of IFRS 7 (Revenue from Contracts with who makes suggestions for appointments to the Nomination 30 June 2021 Customers) in relation to the treatment of net gains (or losses) Committee, which may in turn recommend such appointments arising on temporary holding of investments in the ordinary to the Board for approval. 6% 26% course of business. Whistleblowing Internal Audit The Board has satisfied itself that the Committee as a whole In each case the Committee reviewed and challenged has an effective balance of skills and experience to perform its management on the appropriateness of these accounting policies responsibilities. Each of Roger Perkin, Andrea Blance and John 10% and how they were applied to the Group’s financial statements. Troiano have significant experience of the asset management Internal Controls sector and the wider financial services industry. Roger Perkin has The Committee also considers the accounting estimates and recent and relevant financial experience and competence in 11% judgements made, and any significant issues that have arisen, in accounting and audit. External audit preparing the Group’s financial statements. It scrutinises the clarity and completeness of related disclosures to ensure they are set Ongoing training is provided to assist Committee members in properly in context. In doing so, it pays due regard to any related performing their duties. During the period, this has included a correspondence with the external auditor and any material briefing from the external auditor at the Committee’s December 29% 18% adjustments resulting from the external audit. In the period under meeting on developments in relation to audit and corporate Governance and other Financial reporting review, the Committee has concluded that there were no governance best practice. significant issues requiring judgements to be made in relation to the financial statements. In arriving at this conclusion, the Committee considered the following: 82 Hargreaves Lansdown Report and Financial Statements 2021