A policy is in place outlining the circumstances in which the external auditor is permitted to provide non-audit services to the Group. This policy is regularly reviewed and approved by the Group Audit Committee. In order to engage the external auditor for permitted non-audit service engagements, approval must be granted on a case-by-case in accordance with the policy. A tender must be undertaken for all engagements where the fee is expected to be over £100,000.
The Group Audit Committee reviews and monitors the independence and objectivity of the External Auditor when it approves non-audit work, taking into consideration relevant legislation, ethical guidance and the level of non-audit services relative to audit services. The approval process is rigorously applied to prevent the External Auditor from functioning as management, auditing their own work, or serving in an advocacy role.
As an additional governance control all engagements have to be approved by the relevant member of the Group’s Executive Committee and Chief Financial Officer. The process is overseen and managed by the Chief Governance Officer and Company Secretary and her team.
There are certain services which are prohibited from being carried out by the external auditor and these are provided below: