Page 162 - Sigmaroc Annual-Report 2023

SIGMAROC ANNUAL REPORT 2023
Audit Committee Report
GOING CONCERN AND VIABILITY
The Audit Committee reviews supporting papers from management to support the going concern and viability statements set out on page 179. This includes sensitivity analysis over key assumptions. Following this review, the Audit Committee recommended to the Board the approval of both statements.
EXTERNAL AUDITOR
The external auditor, PKF, attends meetings of the Audit Committee. The Audit Committee has the opportunity to meet with the external auditor without the executive directors being present to provide a forum to raise any matters of concern in confidence and together discusses and agrees the scope of the audit plan for the full year. The external auditor reports on the control environment in the Group, key accounting matters and mandatory communications. The Audit Committee also receives and reviews a report from the external auditor setting out to its satisfaction how its independence and objectivity is safeguarded when providing non-audit services. The value of non-audit services provided by PKF in respect of the year ending 31 December 2023 amounted to £600,000 for due diligence and transactional services (2022: £116,750, principally in respect of tax services and due diligence and transactional services). During the year there were no circumstances where PKF was engaged to provide services prohibited by the FRC’s 2019 ethical standard or which might have led to a conflict of interest.
The Audit Committee continues to be satisfied with the work of PKF and that they continue to remain objective and independent. Zahir Khaki is serving his third year as audit partner.
INTERNAL AUDIT
The Group does not have a formal internal audit function and the CFO performs a number of activities that an internal audit function would perform. The Audit Committee receive regular formal updates covering planned activities, findings of reviews performed and updates on agreed actions from previous reviews. The Audit Committee considers this is appropriate given the close involvement of the executive directors and senior management on a day-to-day basis. However, the need for an internal audit function will be kept under review by the Audit Committee on behalf of the Board.
This report was approved by the Board on 17 March 2024.
Simon Chisholm
Independent Non-Executive Director
GOVERNANCE REPORT