Risk management and internal audit
Good corporate governance requires the Board to maintain a sound system of internal control to safeguard shareholders’ investment and the Company’s assets and at least annually to conduct a review of the effectiveness of Edwards’ system of internal controls. The Board relies on the Audit Committee to assist this process. The Audit Committee reviews the process by which risks are identified and assessed and the effectiveness of the system of internal controls, management representations and assertions including reviewing reports on risk management and internal control from the Head of Internal Audit together with any reports from the external auditors on internal control matters noted as part of their work.
The internal control systems have been designed to manage rather than eliminate the risk of failure to achieve business objectives and provide reasonable assurance against material misstatement or loss.
Internal controls
The financial control framework includes the following features: an annual strategic planning process; an annual budget; a system of monthly reporting which involves comparison of actual results with the original budget, updating full year forecasts; monthly reporting of performance to the Board and the external audit of annual financial statements. The Company’s auditors are currently Price Waterhouse Coopers LLP.
Other controls include EMT approval of capital expenditure and Board approval of all major capital expenditure; Board approval of all M&A activity; a system of authorisation limits and Board consideration of any matter having a material effect on the Group.
Details of the Group’s Code of Conduct and Whistleblowing Policy can be foundhere
Head of Internal Audit
Internal audit is an important element of the overall process by which each of the Board and EMT obtain the assurance required that risks are being properly identified, managed and controlled. Risk based internal audit plans are approved by the Audit Committee annually. The Head of Internal Audit is TY Yeo, his function is supplemented by services provided by Ernst & Young as an outsource service provider. The Internal Audit function reports to the Chairman of the Audit Committee.