Audit committee
The committee is required to meet at least five times each year.
Membership
- Russell Walls (chairman) (appointed 1 July 2004)*
- Mary Francis (appointed 1 January 2007)
- Richard Goeltz (appointed 1 July 2004)
- Euleen Goh (appointed 1 January 2009)
- Michael Hawker (appointed 1 September 2011)
* Chairman from 1 January 2007
Attendance in 2011
| Member | Meetings eligible to attend* | Meetings attended |
| Russell Walls (chairman) | 11 | 11 |
|---|---|---|
| Mary Francis | 11 | 11 |
| Richard Goeltz | 11 | 11 |
| Euleen Goh | 11 | 11 |
| Michael Hawker** | 4 | 4 |
* There were eight scheduled audit committee meetings during 2011 and three additional meetings called at short notice.
** Michael Hawker attended all committee meetings following his appointment.
The following officers normally attend, by invitation, all meetings of the committee:
- Group chief executive
- Chief financial officer
- Chief audit officer
- Chief risk officer
- Representatives of external auditor
Other members of senior management are also invited to attend as appropriate, to present reports.
Main duties
- To consider and make recommendations to the board on the appointment, resignation or dismissal of the external auditor.
- Assess and keep under review, the independence and objectivity of the external auditor and approve and monitor the application of the external auditor policy/business standard.
- Review the significant issues and judgements of management and the methodology and assumptions used, in relation to the Group's financial statements and formal announcements on the Group's financial performance.
- Review the Group's going concern assumptions and the reserving position relating to the Group's life assurance and general insurance operations.
- Review the annual operational plan and effectiveness of the Company's internal audit function.
- Review and assess the effectiveness of systems for internal financial control and financial reporting.
In performing its duties, the committee has access to the services of the chief audit officer, the group company secretary and external professional advisers.
Read the full terms of reference for the committee.
Activities during 2011
- Reviewed the Company's financial announcements, including the annual report and accounts and associated documentation (with members of management and the internal and external auditors).
- Received a report from the chief audit officer concerning the Company's systems of internal control.
- Reported to the board regarding the effectiveness of the Group's overall system of internal control.
- Reviewed, approved and monitored the annual work plan for the Group's internal audit function.
- Received reports on the adequacy of the Group's life assurance and general insurance reserves.
- Approved the annual plan for the external audit and received reports from the external auditor.
- Reviewed the independence, effectiveness and objectivity of the external auditor.
- Members of the committee attended several regional and business unit audit committee meetings.
- Considered the treatment of the sale of RAC and the deconsolidation of Delta Lloyd following the partial disposal of the Group's holding in Delta Lloyd, in the Company's accounts and the accounting assumptions applied to the results.
- Considered the fair value of holdings of Group investments.
- Considered the revised financial statements filed in the US in connection with the Company's issue of $400 million hybrid debt in the US retail market and the disclosures made by the directors in the prospectus and prospectus supplement.
- Considered in detail the adequacy of controls over a number of Group programmes and projects.
- In conjunction with the risk committee, reviewed the Company's systems of risk management and internal control.
- Recommended that the provision of external audit services be put to tender and following a competitive tender, recommended the appointment of PricewaterhouseCoopers to replace Ernst & Young as the external auditor of the Aviva Group.
