"Aurox developing resources,

Shareholders developing wealth"

"Aurox developing resources,

Shareholders developing wealth"

 

 

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Financial Reporting and Risk Management

Safe Guarding Integrity in Financial Reporting

The Company’s financial management and internal control practices have been structured having regard for the scale of the Company’s operations and level of complexity.  

In view of the size of the Board and scale of business operations, a separately constituted audit committee has not been established at this time.   The full Board carries out the audit committee function and collectively takes responsibility for reviewing and authorising the release of the Company’s financial reports to ensure the truthful and factual presentation of the Company’s financial position and integrity of its financial reporting.  The Board will continue to assess the benefits of audit and other committee structures as the Company’s operations develop.    

The Company’s auditor is PKF Chartered Accountants.  They were appointed on 28 October 2003.   Each board member has access to the external auditors and the auditor has access to each board member.  The auditor attends and is available to answer questions at the Company’s annual general meeting.  

The Company’s Managing Director and Chief Financial Officer have provided a declaration to the board in accordance with section 295A stating in writing that the Company’s financial reports present a true and fair view in all material respects of the Company’s financial condition and operational results and are in accordance with relevant accounting standards.

Recognising and Managing Risk

The Board examines and considers areas of significant business risk and implements policy to minimise exposure to these risks.

Areas of risk which are considered at Board meetings include:

• asset protection including exploration and mining tenement tenure and insurance of Company assets and interests;
• project management/development;
• operating activities;
• financial risk including liquidity, price and credit risk;
• internal controls;
• organisational behaviour and human resources;
• occupational health and safety in the workplace;
• heritage and the environment; and
• regulatory compliance and continuous disclosure obligations.
• comprehensive practices are established to ensure capital and operating expenditures are properly approved;
• financial exposures are controlled;
• occupational health and safety standards and management systems are monitored and reviewed to achieve high standards of performance and compliance with regulations; and
• business transactions are properly authorised and executed.
  

The Board delegates the day to day management of risk to the Managing Director, supported by senior executives as required, with responsibility for implementing and maintaining a risk management and control framework for identifying, assessing, monitoring, managing and reporting on material business risks.  The Managing Director is to report to the Board as to the effectiveness of the Company's management of its material business risks, at least annually.  The Board has adopted an overarching risk management policy to assist in the development and formalisation of its risk management practices.  A copy of the Company’s Risk Management Policy is available here.  

Consistent with the requirements of ASX Principles and Recommendations, the Company’s Managing Director and Chief Financial Officer have provided a declaration in writing to the Board that the Company’s financial reports present a true and fair view, in all material respects, of the Company’s financial condition and operational results and are in accordance with relevant accounting standards. Additionally, the Managing Director and Chief Financial Officer have stated in writing that the declaration is based on a sound system of risk management and internal compliance and control systems which implements the policies adopted by the Board and to the extent they relate to financial reporting are operating effectively in all material respects.