47153 AG Barr Annual Report 2025 AW4 SQ WEB - Flipbook - Page 84
A.G. BARR p.l.c. Annual Report and Accounts 2025
AU D IT A N D R I S K
CO M M IT TE E R E P O R T
CO N TI N U ED
a statement on its independence and
objectivity; and
– reviewed the results of this audit work and the
response of management to matters raised.
• Internal control and risk management:
– received reports from internal audit covering
various aspects of the Group’s operations,
controls and processes;
– received reports on the operation of the
Group’s Risk Committee;
– reviewed the Group’s risk register and the
Group’s principal risks in light of the Board’s
risk appetite for key risk areas, together with
the systems and processes for mitigating
those risks;
– received reports from management on the
actions taken by the business to mitigate
cyber risks, including the risk of a
ransomware attack;
– following up on internal control related
actions;
– received reports from management
in relation to the identification and
management of emerging risks for
the Group;
– reviewed and recommended the Group’s
enterprise risk management framework,
including the Group’s risk appetite statement,
to the Board;
– discussed and agreed the nature and
scope of the work to be performed by
the internal auditor;
– reviewed the results of this audit work
and the response of management to
matters raised;
– reviewed the effectiveness of the Group’s
risk management and internal control
systems (including financial, operational,
compliance and risk management
controls); and
– reviewed and approved the Company’s
viability and going concern statements.
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• Policies and procedures:
– reviewed and approved the Treasury
policy, Commodities management policy
and the terms of reference for the Group’s
Treasury and Commodity Committee;
– reviewed and recommended the Group’s
Tax risk management policy to the Board;
– reviewed and approved the Group’s
Anti-facilitation of tax evasion policy;
– reviewed the effectiveness of the Group’s
Anti-bribery systems and controls and
reviewed and approved the Group’s
Anti-bribery and Corruption policy;
– reviewed the Group’s delegated authority
limits;
– approved the reappointment of the internal
auditor;
– made recommendations to the Board
on the appointment and remuneration
of the external auditor and reviewed and
monitored the performance, independence
and objectivity of the auditor and the
effectiveness of the external audit process;
– reviewed the performance of the incumbent
internal auditor and the effectiveness of the
Group’s internal audit activities;
– reviewed its policies on the supply of
non-audit services by the external auditor
and on the employment of former
employees of the Group’s external auditor;
– reviewed the non-audit services provided
to the Group by the external auditor and
monitored and assessed the independence
of both the external and internal auditors;
and
– reviewed the performance and effectiveness
of the ARC and its terms of reference.
At the request of the Board, the ARC also
considered whether the Annual Report and
Accounts for the year ended 25 January 2025,
taken as a whole, are fair, balanced and
understandable and provide the information
necessary for shareholders to assess the
Company’s position and performance, business
model and strategy. Following review of
management’s processes in this regard and
consideration of the draft Annual Report and
Accounts, the ARC recommended to the Board
that it could make the required disclosure as set
out in the Directors’ Responsibilities Statement
on page 129.
Significant areas
The significant matters and key accounting
judgements independently assessed and
considered by the ARC in respect of the period
under review were:
• Revenue recognition – brand support
accruals: judgement is required by
management when determining the level
of brand support accruals at the year end.
During the year, the ARC received and
considered reports from management on the
improvements made to the internal processes
and controls in place with regard to brand
support accruals, and the level of accruals
at the half year and at the year end. It also
received and considered reports from the
external auditor following their review of net
revenue and brand support accruals during
the period. The ARC considered these reports
and was satisfied that the estimates and
judgements made by management are
appropriate.
• Management override of controls: there is
a risk of fraud associated with the potential
override of internal controls by management.
During the year, the ARC assessed this risk,
and received and considered a report from
the external auditor which stated that its
procedures, which included the use of data
analytics, did not identify any errors or
significant deficiencies in internal controls.
The ARC was content that there were no
issues arising.
