Page 53 - CCB_Full-Annual-Report-2021

52 Corporate Governance Statement 53

Contents
Contents

Audit Committee report The Committee ensures the financial ∞ Whether the Bank has made appropriate ∞ The Committee also reviewed and
statements give a fair, balanced and accounting estimates and judgements challenged the Bank’s effective interest
understandable assessment of the The Committee has assessed the rate assumptions and model outputs Strategic Report
Membership and operation of basis for, and appropriateness of, considering the Bank’s approach
the Committee Bank’s performance. To achieve this
the Committee reviews and challenges estimates and judgements proposed to early repayment charges as well
The Audit Committee was chaired by Ian the Bank’s annual financial information by management in the financial reviewing historic performance against
Smith, the Bank’s Senior Independent and in particular the significant financial statements related to going concern, future forecasts.
NED until his retirement on 30 September reporting estimates and judgements. effective interest rate, IFRS 9, and
2021. Thereafter it was chaired by Patrick During 2021, the Committee has intangible & tangible assets. After The Audit Committee appraises the
Newberry as the new Chair of Audit, considered the following matters: challenge, the Committee supported performance of the internal audit function
appointed to the Bank on 24 September management’s proposals. and their continued independence. The
2021. The members of the Audit ∞ The consistency and appropriateness Committee has assessed internal audit
Committee include Caroline Fawcett, Paul of the Bank’s significant accounting ∞ During 2021, the Committee reviewed resources and is satisfied that these are
ffolkes Davis (until 30 June 2021), Tim policies. There have been no material regular reports from management appropriate to fulfil their responsibilities. Corporate Governance Statement
Harvey-Samuel (from 1 July 2021), Richard changes in 2021. assessing the adequacy of the allowance The Committee reviews the Bank’s
Perry, and Nick Treble. Nick Treble is also for credit impairment losses. These external audit strategy including the
Chair of the Risk & Compliance Committee. ∞ Viability and going concern reports assessed the adequacy of appointment of the external auditors and
Committee meetings are attended by assessments in uncertain historic provisions against subsequent approval of the audit fees.
members of the Executive committee macroeconomic circumstances. recoveries, the planned recovery
including the Chief Executive Officer, the The Committee has considered strategies for individual bad debt The Audit Committee also considered the
Chief Financial Officer and the Chief Risk management’s approach to, and the cases, reviewed management’s output of work undertaken to embed a
Officer. The Bank’s outsourced internal conclusions of, the assessment of governance arrangements over the Regulatory Reporting Framework within
audit provider, Deloitte, and external the Bank’s ability to remain a going adequacy of provisions as well as the the Bank that established a more mature
auditor, KPMG, attend each meeting of concern, taking into account the governance over impairment models framework for governance and oversight
the Committee which typically includes Bank’s capital and liquidity position. and benchmarked the Bank’s metrics of regulatory reporting undertaken by
a private session with the NEDs without The Committee considered and, after against other banks. the Bank.
the presence of Executives. The Company taking the Bank’s strategy and external Independent Auditor’s Report
Secretary, or an appropriate delegate, acts market developments into account, Audit Tender Process
as the secretary to the Committee. supported management’s conclusion During 2021, the Bank conducted an audit
that it remained appropriate to adopt tender process for both its internal audit
Audit Committee responsibilities and the going concern basis in preparing resources and its external audit resources.
activity in 2021 the consolidated financial statements. In 2022, KPMG LLP will have been
The Committee also considered
The Audit Committee met four times management’s approach to, and the appointed as external auditors for 10 years
during 2021. The Committee’s principal conclusions of, the assessment of the and, as a Public Interest Entity, the Bank
responsibility is to assist the Board in Bank’s viability. After consideration, is required to undertake a formal tender
carrying out its responsibilities relating to the Committee supported the process. The audit tender process was led
accounting policies, financial governance approach adopted by management by the Chief Financial Officer on behalf
& control framework, and financial as described on page 56. of the Audit Chair, and firms were invited Financial Statements
reporting functions. to tender, submit tender proposals, and
present to an Audit sub-committee for
∞ A review of the annual report
The Committee reviews the effectiveness to ensure it is fair, balanced and evaluation and recommendation to Audit
of the Bank’s internal controls, approves understandable. The Committee Committee and Board on the proposed
the internal audit programme, and considered management’s approach firms for appointment as auditors.
examines internal and external audit to, and governance arrangements
reports. The Committee receives and over, the preparation of this annual In conclusion to that process, the
considers the recommendations of report and recommended to the recommendation accepted by both the
the internal and external audit function Board that, taken as a whole, it was Audit Committee and Board is to appoint
and ensures, via management, that considered to be fair, balanced and PwC LLP as its external auditors for
recommendations are implemented understandable. The approach and the financial year ending 31 December
where necessary. Annually, the Committee results of the assessment are set out in 2022 and retain Deloitte LLP as its Notes to the Financial Statements
receives a conclusion as to the governance, the Directors’ report on page 56. internal auditors.
risk, and control framework from the
Bank’s internal auditors.