47153 AG Barr Annual Report 2025 AW4 SQ WEB - Flipbook - Page 86
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
of the evaluation were shared with the ARC and
the external auditor. Overall, the evaluation was
positive, with a small number of improvement
opportunities identified and discussed with
the external auditor.
Following these reviews and meetings, and
after debate and discussion, the ARC was
satisfied with Deloitte’s performance during the
year, that it was objective and independent, and
that the external audit process remains effective,
with no major issues identified. The ARC has
recommended to the Board that a resolution
proposing the appointment of Deloitte be put
to shareholders at the 2025 AGM.
Internal audit
At the beginning of each year, an internal audit
plan is developed by the internal auditor following
meetings with directors and senior managers
within the business and with reference to the
significant risks contained within the Group’s risk
register and identified controls. The ARC approves
the internal audit plan for the first half of the year
at the beginning of the year and the plan for the
second half of the year at the June ARC meeting.
The ARC receives updates on progress against
the plan and the recommendations arising from
the internal audits throughout the year, together
with updates on management’s progress against
outstanding actions. The ARC held meetings
with the internal auditor in the absence of
management to discuss the internal audit
findings and processes.
The ARC carried out a review of the effectiveness
of the internal audit function and the Company’s
risk management and internal control systems
during the year, led by the Chair of the ARC. This
review included an internally facilitated detailed
and comprehensive evaluation of these matters
using written survey questionnaires, which were
completed by the executive directors and
relevant members of senior management.
Members of the ARC carried out an internally
facilitated review of the Group’s internal audit
function and the Company’s risk management
and internal control systems during the year
using written survey questionnaires. The results
of the evaluation were shared with the ARC and
the internal auditor. Overall, the evaluation was
positive with a small number of improvement
opportunities identified.
Following these reviews and meetings, the ARC
was satisfied that the internal audit function
was performing in an effective manner and that
the Company’s risk management and internal
control systems were effective, with no major
issues identified.
Financial Reporting Council (FRC) Review
The FRC reviews and investigates company
accounts for compliance with relevant reporting
requirements. In January 2025 the FRC raised
two enquiries on our annual report and accounts
for the year ended 28 January 2024. These were:
1) the recognition of a retirement benefit asset
and associated deferred tax liability; and 2) the
treatment of the acquisition of Rio Tropical Ltd
in October 2023 as a business combination.
Having responded to each question, explaining
the accounting treatment applied the FRC was
satisfied with our response and has concluded
their enquiries whilst stating that their review
does not give assurance that the annual report
and accounts is correct in all material respects.
As a result of the FRC’s enquiries we have
however enhanced the disclosures in these
accounts to 25 January 2025 in the areas of
deferred tax and accounting for Rio Tropical Ltd
as a business combination.
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Audit and Risk Committee evaluation
The ARC carried out a review of the performance
and effectiveness of the ARC during the year,
led by the Chair of the ARC. In accordance with
the Code, and consistent with last year, the
evaluation was facilitated internally this year,
following an externally facilitated evaluation
for the year ending January 2023. This review
included a detailed and comprehensive
evaluation of the performance and effectiveness
of the ARC using written survey questionnaires,
which were completed by members of the ARC,
the Chair of the Board, Chief Executive Officer,
the Chief Finance and Operating Officer, Group
Financial Controller, the Chief Legal and
Sustainability Officer and the Company
Secretary. The results of the evaluation were
shared with the ARC. Overall, the review found
that the ARC was functioning in an effective
manner and performing satisfactorily, with
no major issues identified.
Nick Wharton
Chair of the Audit and Risk Committee
25 March 2025
