Policy on the Provision of Non-Audit Services by the External Auditor
1. Introduction
To maintain the highest standards of corporate governance in relation to auditor independence, the Company has adopted a policy regarding non-audit services that may be performed by its external auditor.
The purpose of this policy is to ensure that the independence of the external auditor is not compromised, or perceived to be compromised, by its performance of non-audit services.
2. Fundamental principles of independence
In order for the external auditor to be eligible to perform any non-audit services for the Company, the external auditor must not, as a result of the engagement:
(a) have mutual or conflicting interests with the Company;
(b) audit their own work;
(c) act in a management capacity or as employee; or
(d) act as an advocate for the Company.
3. Services that may not be provided by the external auditor
Consistent with the fundamental principles of independence, the external auditor shall not be permitted to perform any of the following services for the Company:
(a) preparation of accounting records and financial statements;
(b) design and/or implementation of IT systems and financial controls;
(c) valuation services;
(d) internal audit services;
(e) management functions, including senior management secondments;
(f) recruitment and human resources services;
(g) actuarial, legal and investment banking services;
(h) other services designated by the Audit Committee from time to time; or
(i) any other services prohibited by law or relevant professional standards.
4. Services that may be provided by the external auditor
The external auditor will be permitted to provide non-audit services that do not conflict with the role of auditor. Services that may be provided without audit committee approval are:
(a) tax compliance services;
(b) advice on applying accounting standards; and
(c) audits or verification of regulatory returns.
5. Services that may be provided by the external auditor with Audit Committee approval
The external auditor may be permitted by the Audit Committee to perform certain services where the external auditor's detailed knowledge of the Company and its activities permits cost and output efficiencies, provided that the Audit Committee is satisfied that the engagement will not affect the actual or perceived independence of the external auditor. Examples of such services include:
(a) Strategic tax advice;
(b) Due diligence on potential investments or acquisitions;
(c) Investigating accounting assignments.
Such services may only be provided with the prior approval of the Chair of the Audit Committee.