RBS 2005 Annual Report Download - page 122

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Corporate governance
In 2004 KPMG conducted a review of the effectiveness of
Group Internal Audit. It is intended that there will be an
external review of the effectiveness of Group Internal Audit
every three years, with internal reviews continuing in the
intervening years. In 2005 the Audit Committee conducted a
review of Group Internal Audit that involved cross Group
participation and the external auditors.
During 2005 PricewaterhouseCoopers conducted an external
review of the effectiveness of the Audit Committee. It is
intended that there will be an external review of the
effectiveness of the Audit Committee every three years,
with internal reviews by the Board continuing in the
intervening years.
In 2005 the Audit Committee reviewed the audit committee
structure throughout the Group and as a result proposed to the
Board a reorganisation and strengthening of the structure to
ensure that audit committees would cover each separate
Group business appropriately. That recommendation was
accepted by the Board and is now being implemented.
Archie Hunter
Chairman of the Audit Committee
27 February 2006
Corporate governance continued