Directors’ report continued
The Group has in place internal control and risk management systems in relation to the Group’s financial reporting process and the process for the preparation of consolidated financial statements. During the year, no changes in risk management and internal control systems over financial reporting have occurred that have materially affected, or are reasonably likely to have materially affected, the Group’s financial reporting.
Internal control framework
Effective Corporate Governance remains key to the business. The Group continues to review its internal control framework to ensure it maintains a strong and effective internal control environment. During the reporting period, the effectiveness of the framework was regularly reviewed by the Leadership Team.
Business controls are reviewed on an ongoing basis by the internal audit function through a programme based on risk assessment. Professionally qualified personnel manage the department with experience gained from both inside and outside the industry. A risk-based audit plan, which provides assurance over key business processes and commercial and financial risks facing the Group, is approved by the IAG Audit Committee half yearly.
The BA Board considered significant control matters raised by management and both the internal and external auditors, and it reported its findings to the IAG Audit Committee. If weaknesses were identified, the BA Board would ensure that management took appropriate action. No significant failings or weaknesses were identified during 2014.