Telstra 2009 Annual Report Download - page 128

Telstra Corporation Limited and controlled entities
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Notes to the Financial Statements (continued)
Other services
We have processes in place to maintain the independence of the
external auditor, including the level of expenditure on non-audit
services. Ernst & Young (EY) also has specific internal processes in
place to ensure auditor independence.
Fees earned by EY for non-audit services are capped at a maximum of
1.0 times the total audit and audit related fees.
The Audit Committee approve the recurring audit and non-audit fees.
The provision of additional audit and non-audit services by EY must be
approved by the Chief Financial Officer, if not covered by the Audit
Committee approval. The fees approved by the Chief Financial Officer
are reviewed by the Audit Committee at each meeting.
(a) Audit related fees charged by EY are for services that are
reasonably related to the performance of the audit or review of our
financial statements and other assurance engagements. These
services include our regulatory audit, additional control assessments
around our transformation program, various accounting advice and
additional audit services arising on the acquisition of newly acquired
controlled entities.
(b) Tax fees charged by EY mainly relates to licence fee and technical
services in relation to our tax return software.
(c) Other services relate to all additional services performed by EY,
other than those disclosed as auditing and reviewing the financial
report, audit related and tax. These services include various reviews
and non assurance services across the Group.
8. Remuneration of auditors
Telstra Group Telstra Entity
Year ended 30 June Year ended 30 June
2009 2008 2009 2008
$m $m $m $m
Audit fees
Ernst & Young has charged the following amounts for auditing and reviewing the
financial reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.672 7.367 5.093 5.488
Other services
In addition to auditing and reviewing the financial reports, other services were
provided by Ernst & Young in their own right as follows:
Audit related (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.708 1.854 2.378 1.854
Tax (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.129 0.105 0.129 0.077
Other services (c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.389 2.223 1.040 0.614
Total other services provided . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.226 4.182 3.547 2.545