governance - woolworths holdings limited
governance - woolworths holdings limited
governance - woolworths holdings limited
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• the maintenance of proper accounting<br />
records and the adequacy and reliability of<br />
financial information.<br />
The external and internal audit functions assist<br />
in providing the board and senior executive<br />
management with monitoring mechanisms for<br />
identifying risks and assessing controls<br />
appropriate to managing such risks.<br />
The board of directors has not been made<br />
aware by senior executive management or<br />
internal audit that the systems are not<br />
appropriately designed to provide reasonable<br />
assurance that the assets are safeguarded<br />
against material loss or unauthorised use and<br />
that transactions are properly authorised<br />
and recorded.<br />
A risk based review and testing to ensure that<br />
the group maintained adequate accounting<br />
records and effective systems of internal<br />
controls was carried out internally. Appropriate<br />
accounting policies, supported by sound and<br />
prudent managerial judgements and estimates,<br />
have been consistently applied.<br />
Internal audit<br />
Internal audit provides independent, objective<br />
assurance and consulting services designed to<br />
add value and improve the operations of the<br />
group. It assists the board to accomplish its<br />
objectives, by bringing a systematic, disciplined<br />
approach to evaluate and improve the<br />
effectiveness of internal control.<br />
Internal audit has a board-approved charter in<br />
line with the Standards for the Professional<br />
Practice of Internal Auditing of The Institute of<br />
Internal Auditors. The head of internal audit<br />
reports to the audit committee and is<br />
responsible for preparing an internal audit<br />
coverage plan based on the major risks.<br />
Internal audit also works in conjunction<br />
with the external auditors to ensure<br />
optimal coverage.<br />
External audit<br />
The external auditors are engaged to express<br />
an opinion on the financial statements. They<br />
review and test the systems of internal financial<br />
control and the information contained in the<br />
financial statements to the extent necessary to<br />
express their audit opinion.<br />
Risk management<br />
Risk management encompasses the ongoing<br />
identification, assessment and monitoring of<br />
all forms of risk. Woolworths has a risk<br />
management committee which meets regularly<br />
to assess and evaluate the effectiveness of<br />
current policies and procedures and to adapt<br />
these in line with risks associated with the<br />
w oolwor t hs<br />
52<br />
annual report