Directors’ report (continued)
Non – audit services
The Board of the company is cognisant of the requirement to preserve the independence
of the company’s external auditors. Accordingly,
the Board has adopted policies concerning the services provided by external
auditors. These policies are designed to minimise the risk of
auditor independence being compromised through financial dependence and familiarity.
The Board has established authority levels for the engagement of firms providing external audit services to provide non-audit services as
they apply to the Audit Committee and the Finance Director. Approval is required
prior to a commitment being made.
The company may decide to employ the auditor on assignments additional to their
statutory audit duties where the auditors’ expertise and
experience with the company and/or the consolidated entity are important.
Details of the amounts paid or payable to PricewaterhouseCoopers for audit and non-audit services provided during the year are set out
below.
The Board has considered the position and in accordance with the advice received
from the Audit Committee is satisfied that the provision
of the non audit services is compatible with the general standard of independence
for auditors imposed by the Corporations Act 2001. The
directors are satisfied that the provision of non-audit services by the auditor,
as set out below, did not compromise the auditor
independence requirements of the Corporations Act 2001 for the following reasons:
•
all non-audit services have been reviewed by the audit committee to ensure
that they do not impact the impartiality and objectivity of
the auditor;
•
none of the services undermine the general principles relating to auditor independence
as set out in APES 110 Code of Ethics for
Professional Accountants.
A copy of the auditor’s independence declaration is set out on page 40.
Consolidated
2007
$
2006
$
During the year the following fees were paid or payable for services provided
by the auditor
of the parent entity, its related practices and non-related audit firms:
(a) Audit services
PricewaterhouseCoopers Australian Firm:
Audit and review of financial reports and other audit work under the Corporations
Act 2001
Related practices of PricewaterhouseCoopers Australian firm
497,068
57,304
510,186
56,069
Total remuneration for audit services 554,372 566,255
(b) Non-audit services
Audit-related services
PricewaterhouseCoopers Australian Firm:
Takeover compliance
Legal restructure
Other
—
—
7,500
294,500
13,240
—
Total remuneration for audit-related services 7,500 307,740
Taxation services
PricewaterhouseCoopers Australian Firm:
Tax compliance services, including review of company
income tax returns
Takeover compliance
Tax advice on legal structure
Related practices of PricewaterhouseCoopers Australian firm
120,625
—
12,500
26,063
206,614
18,474
167,430
18,253
Total remuneration for taxation services 159,188 410,771
Total remuneration for non-audit services 166,688 718,511
Rounding of amounts
The amounts shown in the report and in the financial statements have been
rounded off, except where otherwise stated, to the nearest
thousand dollars, in accordance with Class Order 98/0100 issued by the Australian
Securities and Investments Commission, the
consolidated entity being in a class specified in that class order.
Auditor
PricewaterhouseCoopers continues in office in accordance with section 327
of the Corporations Act 2001.
This report is made in accordance with a resolution of the directors and is
signed on behalf of the Board.
J.W. Ingram Dr J.D. Nolan
Chairman Managing Director
Sydney
22 August 2007
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