Deloitte LLP were appointed as the external auditor to the
Group in 2009 following a formal tender process.
During the year, the Committee agreed the approach and scope
of the audit work to be undertaken by the external auditor and
undertook an assessment of their qualification, expertise and
resources, independence and the effectiveness of the external
audit process. The Committee also reviewed and agreed the
terms of engagement, the fees, and areas of responsibility and
the work to be undertaken by the external auditor, and agreed
the fees payable in respect of the 2012/13 audit work. Details
of the amounts paid to the external auditor for their audit
services are given in note 7 to the accounts on page 75.
Each of the Group's businesses is consulted on the
effectiveness and independence of the external auditor
annually. In addition, the external auditor provides the 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 Committee has reviewed and is satisfied with the
effectiveness and independence of the external auditor.
In addition to their statutory duties, the services of Deloitte LLP
are also engaged where, as a result of their position as external
auditor, they either must, or are 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
The Committee reviewed and approved the scope of non-audit
services provided by the external auditor to ensure that there
was no impairment of independence and objectivity, and
subsequently monitored the non-audit work performed to
ensure it was within policy guidelines.
The Group has a policy on the use of its external auditor for
non-audit work and this is regularly reviewed. The external
auditor is precluded from engaging in non-audit services that
would compromise their independence or violate any laws or
regulations affecting their appointment as external auditor.
The approval of the Chairman of the Committee is required
prior to awarding contracts for non-audit services to the
external auditor, where in excess of specified amounts.
The external auditor reports to the 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 (0.05Kb).