Anglo American Annual Report 2012

• Received a report regarding internal audit,including the results of internal audit work andwhistleblowing activity in 2011;• Reviewed and approved a paper on the Group’sinsurance arrangements and approach for 2012.At the July 2012 meeting the Committee:• Received a report from management onsignificant accounting issues for the six-monthperiod ending 30 June 2012, including theaccounting treatment of the Codelco option;• Reviewed and discussed the 2012 interim resultsand disclosures. The Committee providedvarious comments on the disclosures;• Reviewed a report from the external auditors,their management letter highlighting internalcontrol findings from the 2011 audit and thedraft letter of representation;• Reviewed and approved the register of nonauditassignments undertaken by the externalauditors in the period to 30 June 2012. Thecommittee also approved changes to the policycovering the provision of non-audit services bythe external auditors;• Received a report on the work of the internalauditors to 30 June 2012;• Received and discussed a report coveringthe key risks facing the Group and each of itsbusiness units based on the output of riskmanagement work undertaken by management.The Committee noted and approved the report;• Received an update on the review of the Group’sinsurance arrangements and noted the newstructure in place for insurance of the Group’sassets and business interruption exposures;• Reviewed the process undertaken bymanagement to assess the external auditors’independence, objectivity and effectivenessduring the 2011 audit. The Committee noted thatDeloitte LLP had conducted the audit effectivelyin an independent and objective manner.At the December 2012 meeting the Committee:• Reviewed the significant audit and accountingitems for the 2012 year end. This includedthe process for reviewing the valuation of theMinas-Rio project, the accounting implicationsof the Platinum structure review and theaccounting treatment for De Beers;• Approved the external auditors’ terms ofengagement, scope of work, the process for theannual audit, the applicable levels of materialityand the audit fee for 2012. The Committeenoted the key audit risks highlighted by theexternal auditors;• Approved the internal audit plan for 2013 havingreviewed the plan and the process of how it isgenerated. The Committee satisfied itself thatthe plan was risk-based in its design;• Discussed and reviewed significant changes tothe Group’s risk profile and approved the 2013integrated risk management plan;• Discussed the responsibilities of the Committeearising from the changes to the Code following areview and consultation process undertaken bythe FRC in 2012. The Committee reviewed itsterms of reference considering changes to theCode that relate to the role of audit committeesand concluded the current terms of referencewere broad enough to cover the changes.No amendments were therefore made.GovernanceAnglo American plc Annual Report 2012 103