Barclays 2012 Annual Report Download - page 57

Objectivity and independence
of the external auditor
The Committee’s responsibility to monitor and review the
objectivity and independence of the external auditor is supported
by a policy to govern the non-audit services that may be provided
by the external auditor. The policy sets out the circumstances in
which the external auditor may be permitted to undertake
non-audit services. Allowable services are pre-approved up to but
not including £100,000, or £25,000 in the case of certain taxation
services. Any non-audit service that exceeds these thresholds
requires approval from me as Chairman of the Committee and
must be robustly justified and, if appropriate, tendered, before it
is approved. I closely review all requests for approval, particularly
any which concern taxation-related services, and specifically tax
advisory services, where our approach is not to use the auditor
unless there is a very strong case for not seeking an alternative
supplier. The Committee receives a quarterly report on non-audit
services undertaken by the auditor so that it can monitor the types
of services being provided and the fees incurred.
A breakdown of the fees paid to the auditor for non-audit work
may be found in note 44 on page 310. Significant categories of
engagement undertaken in 2012 include tax compliance services
for assignments initiated pre January 2011 in connection with our
expatriate and international assignees and attest and assurance
services in connection with the production of a report attesting to
the effectiveness of controls in place at some of Barclays US based
entities. In each case, approval was only given after a full and
thorough assessment of the value case for using the auditor and
of the skills and experience that the auditor would bring to each
assignment. I also satisfied myself that there were safeguards in
place to protect the objectivity and independence of the auditor.
Further details of the non-audit services that are prohibited
and allowed under our policy can be found on our website,
Barclays.com.
Committee Effectiveness
The performance of the Committee is reviewed each year as part
of the Board Effectiveness Review. This year’s review concluded
that the Committee continues to operate effectively, although
there was a slight diminution in the overall score.
Priorities for 2013
For 2013, I anticipate the Committee’s areas of focus to be driven
primarily by the changing regulatory environment, particularly as
the new regulatory regime in the UK is implemented. We will also
be seeking to ensure that the control remediation programmes
we already have in place are delivered, in addition to having
oversight of any action plans that arise from the controls
workstream of the Transform Programme.
Sir Michael Rake
Chairman, Board Audit Committee
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