Audit Committee Overview slide image

Audit Committee Overview

BAE SYSTEMS Audit Committee - Overview The Audit Committee monitors the Company's risk management and internal control systems and reviews their effectiveness. The monitoring and review covers all material controls, including financial, operational and compliance controls Review the policies and procedures for the identification, assessment, management and reporting of risk • Key risks the committee focuses on are; . Revenue/profit recognition/ provisioning Pensions Taxation M&A/Goodwill . • Net Debt • Operations Information management Risk management and internal control systems are underpinned by; . Operational Framework and Code of Conduct Operational Assurance Statements • . Life Cycle Management Monitoring the integrity of the Company's financial statements - "fair, balanced and understandable" Monitoring the independence and effectiveness of internal and external audit and management responses to findings and recommendations. Audit quality both internal and external always a priority Copyright 2020 BAE Systems. All Rights Reserved. BAE SYSTEMS is a registered trademark. 12 12
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