Procedures for the Selection & Appointment of the External Auditor and the Rotation of External Audit Engagement Partners
The Company's Audit Committee is directly responsible for making recommendations to the Board on the appointment, reappointment or replacement of the external auditor (subject to ratification by shareholders).
Whilst the procedures adopted by the Audit Committee are flexible, each of the following matters will be taken into account when considering the choice of external auditor:
- Ability to add value to the Company's operations;
- Resources available to conduct the audit;
- Industry experience and expertise;
- Audit approach and methodology;
- Means and frequency of reporting;
- Transitional issues and arrangements required;
- Independence and conflicts;
- Professional fees;
- Other services offered; and
- Insurance coverage.
The Company has not previously adopted a strict policy of rotation of external audit engagement partners. However, the Company's current external audit engagement partner will rotate off this engagement after the 30 June 2006 financial year.