Risk Management and Audit
Audit committee
The audit committee comprises three Board members. In accordance with its Charter, the committee assists the Board to discharge its responsibility for financial reports, application of accounting policies, internal control systems and the operation of enterprise risk management processes.
External auditors
The Institute engages the services of Ernst & Young as the external auditor. The external auditor’s performance is reviewed annually.
An analysis of fees paid to the external auditors, including a breakdown of any non-audit fees, is provided in Note 17 of the financial report. It is the policy of the external auditors to provide an annual declaration of independence to the audit committee. All proposed non-audit work by the external auditor is required to be approved by the audit committee prior to it being undertaken. The audit committee undertakes a full review of the audit engagement before deciding to reappoint the existing audit firm or seek tenders on the open market.
Auditor independence and non-audit services
The directors received a declaration from the auditor of the Institute.
Non-audit services
The non-audit services provided by the auditor, Sean Van Gorp, or his firm, Ernst & Young, are set out in Note 17, Auditors’ remuneration. The directors are satisfied that the provision of services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The nature and scope of each type of non-audit service provided means that auditor independence was not compromised.
Risk management
The Institute’s executive business risk management committee is charged with identifying, assessing, monitoring and managing risk and compliance across the organisation. The committee reports to the audit committee on an ongoing basis.
This year, the Institute developed its business continuity and disaster recovery framework and detailed plans. A further review of the Institute’s risk management was conducted by an external consultant, and management is currently implementing recommendations. In the next financial year, the focus will be on business continuity and disaster testing and the IT recovery plan.
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