Tesco 2013 Annual Report Download - page 39

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35
Tesco PLC Annual Report and Financial Statements 2013
OVERVIEW BUSINESS REVIEW PERFORMANCE REVIEW GOVERNANCE FINANCIAL STATEMENTS
PricewaterhouseCoopers LLP (‘PwC’) has served as the Company’s
auditors since 1983. The partner engaged on the audit is changed
regularly. The services provided by PwC have been reviewed periodically
and the Audit Committee is satisfied that they remain appropriately
independent and are best placed to conduct the Company’s audit for
2013/14. The Committee therefore recommended PwC be reappointed
as the Company’s auditors.
It is essential for the Committee to be able to have an honest and open
relationship with both its external and internal auditors. This relationship
is developed and maintained through regular private meetings with both
PwC and the Head of Internal Audit. Further information on the role
of the external auditors and our Non-audit Service Policy can be found
on page 43.
The Committee assessed the effectiveness of the external audit process
by means of a detailed questionnaire completed by key stakeholders
including the Board, the Executive Committee, members of senior
management and Internal Audit. The questionnaire assesses the external
audit in the following areas: qualification; expertise and resources;
operational effectiveness; independence and leadership. The results are
rated against an ideal standard and compared to prior years to assess
the consistency of performance.
The effectiveness of the Internal Audit function was assessed by means
of a detailed questionnaire completed by key stakeholders including
members of senior management and the external auditors. The
assessment covers the Internal Audit function’s understanding of its
role and responsibility, its charter, the quality of its communications,
its performance and the skills and experience of the function.
The Committee carried out a review of its effectiveness during the
year, by the Committee Chairman conducting interviews with key
stakeholders and the use of a questionnaire. The Committee concluded
that it continued to be effective and has sufficient resources to carry out
its duties.