Audit CommitteeDuring the year the Audit Committee comprised Mr. Richard W. Jewson, who chairs the committee, Ms. Gillian Bowler, Mr. Anthony E. Collins and Mr. Roderick Ryan. All members of the Committee are determined by the Board to be Independent non-executive Directors. The Audit Committee met three times during the year. The Board believes that Mr. Richard W. Jewson brings to the Committee recent and relevant financial experience. It will be seen from the Directors’ biographical details appearing on page 17 of the 2007 Annual Report that members of the Committee bring a wide range of financial, taxation, legal, commercial and business experience to the Committee. Under its terms of reference, the Audit Committee monitors the integrity of the Group’s financial statements and announcements relating to the Group’s performance. The Committee is responsible for monitoring the effectiveness of the external audit process and making recommendations to the Board in relation to the appointment, reappointment and remuneration of the external auditor. It is responsible for ensuring that an appropriate relationship between the Group and the external auditor is maintained, including reviewing non-audit services and fees. A new Group Audit Partner is appointed every five years and senior audit staff are rotated on an ongoing basis. Non-audit tax and secretarial services were provided by KPMG during 2007. The Committee believes that the provision of these services by KPMG does not conflict with its independence as auditor. The Committee reviews the Group’s systems of internal control and the processes in place for monitoring and evaluating the risks facing the Group. The Committee is satisfied that its role and authority include those matters envisaged by the 2006 FRC Combined Code to fall within its jurisdiction and the Board has delegated authority to the Committee to address those tasks for which it has responsibility. The Chairman of the Committee reports to the Board at each Board meeting. The KPMG Audit Partner and Tax Partners, together with the Finance Director attend Audit Committee meetings at the request of the Chairman of the Committee. The Committee also meets in private session and twice yearly the Committee meets with the external auditor without the executive management present. The Committee’s terms of reference are available from the Company and are displayed on the Group’s website www.graftonplc.com. In 2007 the Audit Committee discharged its responsibilities by:
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