What should the company's annual report describe regarding the board?

The correct answer focuses on the audit committee because it plays a crucial role in overseeing the integrity of financial reporting, the effectiveness of internal controls, and the relationship with external auditors. The annual report typically includes detailed disclosures about the audit committee's composition, structure, and responsibilities. This transparency helps stakeholders understand how the board ensures accountability and maintains the integrity of the financial statements.

While the work of internal auditors, the remuneration committee, and the audit committee's specific activities are important, they are not as central to the overarching responsibility of the board as the audit committee itself. The audit committee's role in enhancing confidence in the reported financial results and compliance with regulatory requirements is why many governance codes heighten the focus on its activities in the annual report. This ensures that stakeholders have a clear understanding of how the board is managing risk and maintaining oversight within the organization.