Risks and risk management Risk management continued INTERNAL CONTROL AND INTERNAL AUDIT The Audit and Risk Committee has The Board is responsible for the Group’s system of internal control and for reviewingoversight of the system of internal its effectiveness. The table below summarises the Group’s system: controls and of the internal audit programme and receives the report of the external auditor following the BOARD annual statutory audit. • Collective responsibility for internal• Control framework setting out AUDIT AND RISK COMMITTEE REPORT control responsibilities PAGE 130 • Formal list of matters reserved for • Approval of key policies and decision by the Board procedures It should be noted that internal control • Monitors performance systems such as this are designed to manage rather than eliminate the risk EXECUTIVE BOARD of failure to achieve business objectives and can provide only reasonable, and not absolute, assurance against material • Responsible for operating within the • Recommends changes to controls/ loss or accounting misstatement. control framework policies where needed • Reviews and monitors compliance • Monitors performance with policies and procedures AUDIT AND RISK COMMITTEE • Oversees effectiveness of internal • Approves independent internal audit control process programme • Receives reports from external • Receives reports generated through auditor the internal audit programme INTERNAL AUDITOR • Provides assurance to the Audit and Risk Committee through independent reviews of agreed risk areas 78 DUNELM GROUP PLCANNUAL REPORT & ACCOUNTS 2021