AmecFC GIA Charter 2017

Group Internal Audit Charter

To continue to be a successful
and profitable business, Amec Foster
Wheeler needs to have proper systems
of control over the management of risk.

Our management team is responsible
for establishing and maintaining adequate
controls over these risks and our board
is responsible for reviewing their
effectiveness. Group Internal Audit (GIA)
is fundamental to this process and this
charter has been produced to explain GIA’s
role and responsibilities and how you can
contribute and benefit from their activities.

John Lewis
Chief Executive

Scope of activities

GIA provides an independent assurance activity to our
executive and our audit committee. It also assists all levels
of management in the discharge of their responsibility to
manage risks to the business and establish sound systems
of internal control. This is done by:

XXDevelop an annual audit plan using appropriate
risk-based methodology, taking into account risks and
control issues identified by management.

XXMonitoring and reporting on the effectiveness and
efficiency of risk management activities through
operational assurance reviews;

XXReviewing and appraising the performance and
effectiveness of systems of internal control, both
existing and proposed, to promote effective control
at reasonable cost in business units, new acquisitions
and start-ups;

XXDetermining the level of compliance with established
Amec Foster Wheeler policies, procedures, directions
and with relevant regulation and legislation;

XXDetermining the effectiveness with which Amec Foster
Wheeler’s assets are accounted for and safeguarded
from losses of all kinds;

XXAscertaining the accuracy, reliability and timeliness of
management information produced. This includes
material information that is published, although not
audited, by the statutory auditor;

XXConducting operational and financial internal control
reviews that identify efficiency improvements to those
controls in use;

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management environment.

Relations with external auditors

GIA’s responsibility is to the executive and audit
committee; the external auditors fulfil a statutory duty.
The objectives and the approach are different, although
some of the work is common. GIA co-operates with the
external auditors and copies of reports and working
papers are made available to them, where applicable,
to avoid duplication of effort.

Reporting and follow-up

GIA will advise the management team upon the proposed
nature and scope of audit reviews, including timings. The
management team will have the opportunity to comment
and suggest modifications before the review commences
and, as the review progresses, will be kept informed of
any issues arising.

Throughout this process, importance is attached to
regular discussion with the management team to
ensure that a proper balance is achieved in presenting
conclusions and reporting. GIA operates a QA process over
the work of the auditors to ensure that any assertions
made are adequately supported and evidenced.

Every effort is made to ensure that the management
team agrees with the factual content, tone and balance
of any report, as well as the recommendations and
implementation timetable, before it is published.

However, ownership of any report belongs to GIA and
criticism, when justified, is to be directed to the chief
executive and the audit committee. GIA will monitor the
implementation of recommendations and is required to
undertake follow-up reviews, where appropriate.

Mandatory procedures

Management are responsible for ensuring compliance with
the Group’s mandatory procedures, GIA’s responsibility is
to appraise the Board over management’s effectiveness for
discharging this task.

Audit committee

One of the audit committee’s roles is to monitor the work
of GIA and it does this by reviewing and approving its work
plans and receives reports upon significant findings and
overdue recommendations. The audit committee is also
authorised by the board to seek any information it requires
from any member of staff. All staff are expected to co-
operate with any request made of them.

Personal development

In the course of their work, GIA staff are exposed to a
wide variety of business activities. This provides excellent
training and experience and staff are selected for their
ability both to take advantage of the opportunity and to
make a positive contribution to the business.

GIA supports the auditors in the attainment of other
relevant professional qualifications.

It is policy for GIA staff to be made available for other
suitable positions within the business once they have
demonstrated their potential.

Contact us
Should you require any further information please contact:

Stephen Perks Delivering
SVP Group Internal Audit on promises
and SOX Developing
[email protected] full potential
+44 (0)20 7429 7500

Ian McHoul
Chief Financial Officer
[email protected]
+44 (0)20 7429 7500

www.amecfw.com Doing the
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