GOVERNANCE AUDIT AND RISK COMMITTEE REPORT CONTINUED S External audit Financial reporting and significant financial judgements and TR – Assessed the External Auditor’s independence, objectivity and estimates A TE effectiveness One of the Committee’s principal responsibilities is to review and G I – Considered and recommended to the Board the reappointment report to the Board on the clarity and accuracy of the Group’s Financial C of the External Auditor Statements, including the Annual Report and the Interim Results R E – Considered External Auditor fees and their terms of engagement Statement. The Annual Report seeks to provide the information P O – Reviewed the Non-Audit Services Policy necessary to enable an assessment of the Company’s position and R – Reviewed the External Auditor non-audit services and fees performance, business model and strategy. The Committee assists T the Board with the effective discharge of its responsibilities for Risk management and internal controls financial reporting, and for ensuring that appropriate accounting G – Monitored the Company’s corporate risk register, including the policies have been adopted and that management has made O VE identification and assessment of the Group’s principal and appropriate estimates and judgements. In preparing the Financial R emerging risks and movement in such exposures Statements for the period, there were a number of areas requiring the NAN – Reviewed the effectiveness of the Group’s Enterprise Risk exercise of a high degree of estimation. These areas have been C Management Framework and System and internal control systems discussed with the External Auditor to ensure the Group reaches E – Considered responses, and their timeliness, to audit findings and appropriate conclusions and provides the required level of disclosure. recommendations for control improvements The significant issues considered by the Committee in respect of the F – Reviewed the risk management and internal controls disclosures in Annual Report are set out on page 101. I the half year accounts and Annual Report NAN – Reviewed and approved the updated Confidential Reporting Management are responsible for establishing and maintaining C IAL Policy, including an analysis of investigations undertaken during the adequate internal controls over financial reporting. These are year designed to provide reasonable assurance regarding the reliability of S T – Received regular reports related to the implementation of the new financial reporting and the preparation of Financial Statements for A T ERP system and reviewed the key challenges and risks associated external reporting purposes. The financial reporting internal control E M with the project system covers the financial reporting process and the Group’s process E N – Received regular reports on the developments of the FRC’s for preparing consolidated accounts. It includes policies and T proposals for corporate governance and audit reform ahead of procedures which require the following: S the proposed new financial reporting regime – The maintenance of records that, in reasonable detail, accurately F – Reviewed the Annual Fraud Risk Assessment and related fraud U and fairly reflect transactions including the acquisition and disposal R prevention and detection control activities T of assets H – Received updates on material litigation E R – Reasonable assurance that transactions are recorded as necessary INF Internal Audit to permit preparation of Financial Statements in accordance with – Approved the annual Internal Audit plan and approach for 2024, International Financial Reporting Standards OR including its alignment to the principal risks, emerging areas of risk, – Reasonable assurance regarding the prevention or timely M A coverage across the Group and continuing review of the Group’s detection of unauthorised use of the Group’s assets T I processes and controls ON – Monitored and reviewed the effectiveness and independence of There are also specific disclosure controls and procedures around the the Internal Audit function including consideration of key Internal approval of the Group’s Financial Statements. Audit reports, and the implementation of Internal Audit Fair, balanced and understandable recommendations The Board recognises its duty to ensure that the Annual Report and – Provided oversight of delivery of the 2023 Internal Audit plan, Accounts, taken as a whole, are fair, balanced and understandable and reviewing Internal Audit reports and findings issued during the year provides the information necessary for shareholders to assess the and the status of implementation of recommended corrective actions Group’s position and performance, business model and strategy. To Other areas enable the Board to have confidence in making this statement, it – Reviewed and recommended to the Board for approval the revised requested that the Committee undertake a review and report to the Committee terms of reference Board on its assessment. The key elements of the assurance framework – Reviewed the results of the evaluation of the effectiveness of the which supports the assessment by the Committee were: Committee – the process by which the Annual Report and Accounts were – Approved TCFD disclosures for the Annual Report prepared, including detailed project planning and a – Received an update on tax matters for the Group and reviewed and recommended to the Board approval of the Group’s annual tax comprehensive review process; strategy and publication on the Company website – review of the drafting and verification processes for the Annual – Received a treasury update Report and Accounts by the Disclosure Committee; – Received a pension strategy update – comprehensive reviews undertaken by the Executive Directors, members of the Executive Committee and other members of senior management comprising the Annual Report and Accounts drafting team to consider content accuracy, regulatory compliance, messaging and balance; ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2023 100