Statement of Corporate Governance Practices (continued)  Timely and Balanced Disclosure  Rights of Shareholders  The Company has established written policies and procedures designed to ensure compliance with the ASX Listing  Rule requirements such that:  (i) all investors have equal and timely access to material information concerning the Company - including its  financial situation, performance, ownership and governance; and  (ii) Company announcements are factual and presented in a clear and balanced way.  (i) reviews the financial reporting process of the Company on behalf of the Board and reports the results of its  activities to the Board;  (ii) discusses with management, the internal auditors, and the external auditors, the adequacy and effectiveness of  the accounting and financial controls, including the policies and procedures of the Company to assess, monitor  and manage business risk, and any legal and ethical compliance programmes;  (iii) reviews with the external auditor any audit problems or difficulties and the response of management;  (iv) receives reports from the external auditor on the critical policies and practices of the Company;  (v) makes recommendations to the Board on the appointment, reappointment or replacement (subject, if applicable,  to shareholder ratification), remuneration, monitoring of the effectiveness, and independence of the external  auditors;  (vi) reviews and assesses the independence of the external auditor;  (vii) reviews the mission, charter and resources of the internal auditor and discusses the scope of the internal audit  with the internal auditor;  (viii) reviews and discusses with the Board any ASX press releases, the half-year financial report, appendix 4E and  other reports required to be lodged with the ASX, prior to the filing of these documents with the ASX;  (ix) establishes procedures for the receipt, retention and treatment of complaints received by the Company (if any)  regarding accounting, internal accounting controls or auditing matters and the confidential, anonymous  submission by employees of the Company of concerns regarding accounting or auditing matters.  (i)  the statement made by the Managing Director and Finance Director to confirm to the Board that the accounts are  true and fair and comply with accounting standards, is founded on a sound system of risk management and  internal compliance and control which implements the policies adopted by the Board; and  (ii) the Company's risk management and internal compliance is operating efficiently and effectively in all material  respects.  The Managing Director and the Finance Director state to the Board in writing that:  The systems of internal financial controls have been determined by senior management of the Company, and are  designed to provide reasonable, but not absolute protection against fraud, material misstatement or loss. These  controls are intended to identify, in a timely manner, control issues that require attention of the Board or audit  committee.  HARVEY NORMAN HOLDINGS LIMITED AND ITS CONTROLLED ENTITIES – ANNUAL REPORT 2003  14  Recognition and Management of Risk  The Board or appropriate Board committees have established policies on risk oversight and management. In order to  carry out this function, the audit committee:  The Company requests the external auditor to attend the annual general meeting and be available to answer  shareholder questions about the conduct of the audit and the preparation and content of the independent audit report.  The Company has designed and disclosed a communications strategy to promote effective communication with  shareholders, subject to privacy laws and the need to act in the best interests of the Company by protecting  confidential commercial information, and encourage effective participation at general meetings. 