Internal Control

The Board ensures that there has been, and continues to be an ongoing process for identifying, evaluating and managing the significant risks facing Sportingbet.

While acknowledging the overall responsibility for the system of internal control and for reviewing its effectiveness, the Board is aware that the system is designed to manage, rather than to eliminate the risk of failure to achieve business objectives and can only provide reasonable, but not absolute, assurance against material misstatement or loss.

The Board seeks to continually strengthen the internal control systems.

• Monthly management information, including financial accounts and key performance indicators, are defined and produced on a timely basis for review by the Board.
• A detailed formal budgeting process for all Group businesses culminating in an annual budget which is reviewed and approved by the Board. Results for the Group and for its main constituent businesses are reported monthly against the budget to the Board and revised forecasts for the financial year are considered each quarter.
• A comprehensive financial and accounting package sets out the principles of the minimum standards required by the Board for the effective financial control. This package sets out the financial and accounting policies and procedures to be applied throughout the Group. Compliance with the policies and procedures set out in this package is reviewed regularly. Formal reports for the Board are prepared by the senior executives on the operation of those elements of the system for which they are responsible.
• We have clearly defined guidance for capital expenditure. These include annual budgets, detailed appraisal and review procedures, levels of authority and stringent due diligence requirements where businesses are being acquired.

External Audit

We appointed Grant Thornton LLP in 2007 as our External Auditors for the company. Grant Thornton LLP are informed of all internal control systems, accounting policies and compliance with applicable accounting standards by invitation to the Audit Committee meetings.

For the past two years, Grant Thornton LLP have reviewed the financial statements of Sportingbet Plc and its subsidiaries to form an independent opinion on whether or not those financial statements are relevant, accurate, complete, and fairly presented.