Audit Committee report continued
Principal duties delegated to the Audit Committee
Areas delegated to the Audit Committee Committee responsibilities
Activities during the year
• Monitoring the integrity of the Financial Statements relating to the Group’s financial performance and their compliance with the provisions of IFRS, the Companies Act, the UK Corporate Governance Code, the Disclosure Guidance Transparency Rules and other regulations • Reviewing material information and significant accounting judgements contained in the Annual Report and Accounts • Advising the Board on the continuing appropriateness of the Group’s existing accounting policies and the application of any new or modified accounting and reporting standards • Advising the Board on the effectiveness of the processes ensuring that the Annual Report and Accounts, when taken as a whole, is fair, balanced and understandable
• Continued focus on quality of earnings and adherence to Individually Significant Items accounting policy • Reviewed all significant accounting areas and areas of key estimation. Reviewed PwC audit conclusions in these areas with significant discussions around the Group’s annual impairment review, assumptions and resultant disclosures
Financial reporting
• Considered recent technical updates including guidance issued by the Financial Reporting Council • Reviewed management’s Going Concern and Viability Statement assessment, including macro-economic considerations. Reviewed PwC audit conclusions in these areas • Reviewed a summary of why management considers the Annual Report is fair, balanced and understandable • Received regular briefings from the SVP, Global Governance, Procurement and Estates summarising risk management and control issues • Received a self-assessment of the finance controls highlighting enhancements made during the year, areas of continuous improvement and specific actions to implement minimum control standards • Planning for regulatory changes arising from the new corporate governance reform requirements, including identifying material controls and other legislation such as the failure to prevent fraud • Monitoring ESG reporting, including progress on TCFD and CSRD, and embedding sustainability into the business • Received a summary of regulatory updates covering whistleblowing, fraud and anti-bribery as well as health and safety updates documenting new initiatives and activities • Review of the failure to prevent fraud legislation including updating our policies, risk assessment and training • Review of any whistleblowing findings resulting from investigations • Reviewed the findings from the internal audit assignments conducted during the year and approved the Internal Audit Plan for the forthcoming year • Approved the Internal Audit Charter • Commissioned an External Quality Assessment of the risk and assurance function, required every five years per the new CIIA Standards • Reviewed the findings from the audit for the year ended 30 September 2025 • Following the completion of PwC’s FY24 audit, the Committee was informed that the FRC’s Audit Quality Review (AQR) team had chosen the Group’s audit for its review. The Committee has received a copy of the review and was pleased to note that it did not identify any key findings and only one limited improvement is required
Narrative reporting
• Reviewing the effectiveness of the Group’s internal control systems • Reviewing the nature and extent of significant financial risks and how they can be mitigated
Internal controls and risk management systems
• Reporting to the Board on the procedures for responding to whistleblowing, fraud or potential breaches of anti-bribery legislation
Compliance, whistleblowing and fraud
• Reviewing the internal audit reports discussing any major control failures or weaknesses
Internal audit
• Reviewing the audit findings with the external auditor including discussing any major issues that arise during an audit, the accounting and audit judgements made, the level of any errors identified during the audit and the effectiveness of the audit process itself • Making recommendations to the Board in relation to the appointment of the external auditor, approving its remuneration and terms of engagement • Overseeing the relationship with the external auditor including, but not limited to, assessing its independence, objectivity and effectiveness
External audit
NCC Group plc — Annual report and accounts for the year ended 30 September 2025 72
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