Auditors

During 2009, the Company reviewed the services of its existing auditors, PricewaterhouseCoopers LLP, and following a tender, appointed Deloitte LLP to serve as its statutory auditors until the conclusion of the 2010 AGM. A resolution proposing the appointment of Deloitte LLP as auditors to the Company will be put to the 2010 AGM.

The Company has a policy on the use of its auditors for non-audit work and this is regularly reviewed. The auditors are precluded from engaging in non-audit services that would compromise their independence or violate any laws or regulations affecting their appointment as auditors. The approval of the Chairman of the Audit Committee is required prior to awarding contracts for non-audit services to the external auditors in excess of specified amounts. The external auditors report to the Audit Committee annually on their independence from the Company. Periodic rotation of key audit partners is also required. More information can be found in the Use of External Auditors PDF (0.07Kb)

Each of the Group’s businesses is consulted on the effectiveness and independence of the auditors annually. In addition, the auditors provide the Audit Committee with a schedule of each matter on which there was an initial difference between them and management in relation to the accounting treatment, and with the final decisions on these issues. The Audit Committee is satisfied with the effectiveness and independence of the external auditors.

In addition to their statutory duties, Deloitte LLP is also employed where, as a result of its position as auditor, it either must, or is best placed to, perform the work in question. This is primarily work in relation to matters such as shareholder circulars, Group borrowings, tax advice, regulatory filings and certain business acquisitions and disposals. Other work is awarded on the basis of competitive tendering.