Audit Committee

The Audit Committee is required to meet at least three times a year and the chair of the committee, the external auditors and Resources Director may request a meeting if they consider it necessary.

Terms of Reference for the Audit Committee

  • Review the annual accounts of the CBI with CBI management and the external auditors (including consideration of accounting policies and key financial judgements, estimates and forecasts). Based on this review the Audit Committee will recommend to the CBI Board whether or not the annual accounts should be adopted;
  • Review the auditors' letter to management on issues and recommendations arising from the audit and consider management's response to the points raised by the auditors;
  • Meet with the external auditors without CBI management at least once a year and report any issues from that meeting to the CBI Board or President as appropriate. The Audit Committee will also monitor any action agreed to be taken as a result of such issues;
  • Review the effectiveness and strength of the CBI's finance function and the robustness of the succession plans in respect of the Resources Director;
  • The Audit Committee reviews the effectiveness of the group Risk Process which the CBI Board is ultimately responsible for. Each business area is responsible for identifying, assessing and managing the risks in their respective area. For more information on the CBI risk process please click here (hyperlink to risk section).
  • Review and report to the CBI Board on the appointment of the external auditors annually including an assessment of their fee, independence (including the provision of non-audit services and the length of tenure) and effectiveness and consideration of the need to tender the appointment of external auditors. The last tender was held in 2013 where Buzacott LLP were appointed;
  • Monitor the process for the reporting by CBI staff to the Audit Committee Chairman of any financial or other impropriety (whistleblowing) and associated investigation and corrective action;
  • Review and amend (if required) the whistleblowing process;
  • Review the CBI's policies and approach to ensuring compliance with the UK Bribery Act;
  • Consider at least annually whether an internal audit function is needed and report on this to the CBI Board;
  • Report to the CBI Board on how it has discharged its responsibilities.
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Membership of the Audit Committee

Appointments to the Audit Committee are approved by the CBI Board.

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External Auditors of the CBI

The Audit Committee is responsible for recommending a firm of auditors of appropriate independence and experience and for the approval of all audit fees and terms of engagement. Auditors of the CBI are approved via vote at the Annual General Meeting (currently Buzzacott LLP).

The Audit Committee's policy is to undertake a formal assessment of the auditors' objectivity and independence each year which includes:

  • Review, and agreement, of non-audit services provided to the CBI and related fees;
  • Review of the auditors' own procedures for ensuring the independence of the audit firm and partners and staff involved in the audit;
  • Obtaining written confirmation from the auditors that, in their professional judgement, they are independent.

The Audit Committee monitors regularly the non-audit services being provided to the CBI by its external auditors. The Audit Committee follows the guidelines set out in the Auditing Practices Board Ethical Standards issued in December 2011 in monitoring the non-audit services being provided to the CBI by its external auditors.

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