The Audit Committee has sole responsibility for assessing the independence of the external auditors, BDO Stoy Hayward LLP. The Committee has had due regard to the document published in May 2003 by the Institute of Chartered Accountants in England and Wales: Reviewing Auditor Independence: Guidance for Audit Committees. Each year the Committee:
- Seeks reassurance that the external auditors and their staff have no family, financial, employment, investment or business relationship with the Company. To this end, the Committee requires the external auditors and their associates to confirm this in writing, and detail the procedures which the auditors have carried out in order to make this confirmation.
- Checks that all partners engaged in the audit process are rotated at least every five years.
- Assesses the likely impact on the auditors’ independence and objectivity before awarding them any contract for additional services. It is Company policy to require Audit Committee approval for all non-audit services provided by the independent auditors.
- Has as a standing agenda item at each Audit Committee meeting the consideration of auditor independence.