Governance Report Report of the Audit and Risk Committee continued The Group has a formal whistleblowing External audit procedure in place. Whistleblowers can report The Audit and Risk Committee has in confidence to the Chair of the Audit and responsibility for monitoring the performance, Risk Committee, who has responsibility for objectivity and independence of the Group’s investigating any concerns. The Board and the auditor, PwC. The Committee has assessed the Committee are made aware of any concerns at effectiveness of PwC as external auditor in the Board or Committee meetings as appropriate forthcoming year against the following criteria: and informed as to the resolution or other status of complaints. • the external audit plan, including the key Internal audit audit risk areas, materiality and significant judgment areas; The Group did not have a separate internal • the terms of the audit engagement letter and audit function for the whole of the period under the associated level of audit fees; and review. During 2021, following the organic • the independence of the external auditors growth and additional combinations, it was in the context of the non-audit services decided that an internal audit function would provided, of which there were none with the be appropriate. exception of the half year review. For the majority of 2021, an internal control Taking into account the above factors, manager has been in place working on internal the Committee has concluded that the controls and risk management in the business. appointment of PwC as auditors for the The Committee has concluded that an internal forthcoming year continues to be in the best audit function should continue to be developed interests of the Company and its shareowners. with a focus on expanding the Group’s existing The resolution to appoint PwC will propose that risk matrix and improved monitoring of it holds office until the conclusion of the next those risks. Annual General Meeting at which accounts We are in the process of securing this internal are laid before the Company, at a level of audit provision from a large accounting firm, remuneration to be determined by the Audit and, in addition, we have recommended to the and Risk Committee. Board, and it has agreed, that the Company’s internal control team should be built out. Rupert Faure Walker Chair, Audit and Risk Committee 14 May 2022 64 S4Capital Annual Report and Accounts 2021