GOVERNANCE AUDIT AND RISK COMMITTEE REPORT CONTINUED S process and the quality of the audit delivery and the quality and During FY 2023 the following permitted audit-related services have TR experience of the audit partner engaged in the audit and has also been approved in accordance with this policy: A considered the extent and nature of challenge demonstrated by the TE G I External Auditor in its work and interactions with management. The – Review of the Company’s interim financial statements for the C Committee has considered the objectivity of the External Auditor period ended 30 June 2023 – £59,125. R E including the nature of other work undertaken for the Group as set P O out below. In granting approval for these services, the Chief Financial OfÏcer and R Chair of the Committee considered the nature and level of non-audit T Independence and re-appointment of the External Auditor services provided by the External Auditor and was satisfied that the The Committee reviewed the independence and objectivity of the objectivity and independence of the External Auditor was not G O External Auditor during the year and confirmed that it considers EY to compromised by the non-audit work undertaken during the year. VE remain independent. The Committee also considers that the Company Details of the fees paid to the External Auditor during the financial year R has complied with the Statutory Audit Services for Large Companies can be found in note 4 to the Financial Statements. NAN Market Investigation (Mandatory Use of Competitive Tender C Processes and Audit Committee Responsibilities) Order 2014 for the Internal controls and risk management E financial year under review. The Board is ultimately responsible for the Group’s system of internal controls and risk management and it discharges its duties in this area F The External Auditor is required to rotate the audit engagement by determining the nature and extent of the principal risks it is willing I NAN partner every five years. The current engagement partner, Simon to accept in pursuit of the Group’s strategic objectives (the Board’s O’Neill, began his appointment at the commencement of the 2019 risk appetite); and challenging management’s implementation of C IAL financial year and therefore a new audit engagement partner will be effective systems of risk identification, assessment and mitigation. S appointed with effect from the 2024 financial year. Based on the The Committee is responsible for reviewing the effectiveness of the T Committee’s recommendation, the Board is proposing that EY be Group’s internal control framework and risk management A T re-appointed to ofÏce at the Annual General Meeting on 8 May 2024. arrangements. The system of internal controls is designed to manage E M rather than eliminate the risk of not achieving business objectives and E N Non-audit services can only provide reasonable and not absolute assurance against T The Committee recognises that the independence of the External material misstatement or loss. This process complies with the S Auditor is an essential part of the audit framework and the assurance Guidance on Risk Management, Internal Control and Related Financial F that it provides. The Committee adopted a policy which sets out a and Business Reporting issued by the FRC. It also accords with the U R framework for determining whether it is appropriate to engage the provisions of the Code. Details of the Group’s risk management T H Group’s auditors for permissible non-audit services and for process and the management and mitigation of principal risks E R pre-approving non-audit fees. The overall objective of the policy is to together with the Group’s Viability Statement can be found in the Risk INF ensure that the provision of non-audit services does not impair the and Viability Report on page 70. External Auditor’s independence or objectivity. This includes, but is OR not limited to, assessing: The Board, through the Committee, has carried out a robust M A assessment of the principal risks facing the Group and agreed the T I – any threats to independence and objectivity resulting from the nature and extent of the principal risks it is willing to accept in delivering ON provision of such services; the Group’s strategy (the Board’s risk appetite). It has considered the – any safeguards in place to eliminate or reduce these threats to effectiveness of the system of internal controls in operation across the a level where they would not compromise the Auditor’s Group for the period covered by the Annual Report and up to the date independence and objectivity; of its approval by the Board. This review covered the material controls, – the nature of the non-audit services; and including financial, operational and compliance controls and risk – whether the skills and experience of the audit firm make it the most management arrangements. suitable supplier of the non-audit service. Control environment – internal control framework The total value of non-audit services that can be billed by the External The internal control framework is built upon established entity-level Auditor is restricted by a cap set at 70% of the average audit fees for controls. The Group defines its processes and ways of working the preceding three years which produced a cap for the 2023 financial through documented standards and procedures which guide the way year of c.£400,000. the Group operates, based on a set of Group Framework Policies, which establish the core principles of conduct of the Group and its The approval of the Committee must be obtained before the External employees. These Group Framework Policies address a number of Auditor is engaged to provide any permitted non-audit services. For topics including compliance laws, quality, responsible procurement, permitted non-audit services that are clearly trivial, the Committee equity diversity and inclusion, IT and cyber-security, intellectual has pre-approved the use of the External Auditor for cumulative property, conflicts of interest and confidential reporting. amounts totalling less than £200,000 on the approval of the Chief Financial OfÏcer and Chair of the Committee. On joining the Group all employees are provided with the Group Framework Policies and are asked to confirm that they have read and understood them. Focused training is then provided on these topics at regular intervals, on a targeted basis. ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2023 102