HSBC 2006 Annual Report Download - page 333

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awards under the Restricted Share Plan 2000 and The HSBC Share Plan are included in the ‘Directors’ Remuneration
Report’ on pages 280 to 289.
8 Auditors’ remuneration
Auditors’ remuneration in relation to statutory audit amounted to US$44.7 million (2005: US$47.0 million; 2004:
US$41.7 million).
The following fees were payable by HSBC to the Group’s principal auditor, KPMG Audit Plc and its associates
(together ‘KPMG’):
2006 2005
2004
US$m US$m
US$m
Audit fees for HSBC Holdings’ statutory audit:
– fees relating to current year ..................................................................... 2.7 2.8
2.3
– fees relating to prior year ........................................................................ – 0.2
0.7
2.7 3.0
3.0
Fees payable to KPMG for other services provided to HSBC:
– audit of HSBC’s subsidiaries, pursuant to legislation ............................ 40.4 42.5
36.6
– other services pursuant to legislation1 .................................................... 15.4 29.2
13.4
– tax services .............................................................................................. 2.0 2.6
6.2
– services relating to information technology ............................................ 0.6 –
–
– services related to corporate finance transactions .................................. 1.6 0.3
1.6
– all other services ...................................................................................... 4.1 5.0
4.7
64.1 79.6
62.5
Total fees payable ............................................................................................ 66.8 82.6
65.5
1 Including fees paid to KPMG in respect of work relating to preparation for reporting under section 404 of the Sarbanes-Oxley Act of
US$2.2 million (2005: US$11.7 million; 2004: US$4.1 million). Other accounting firms have been paid a total of US$8.3 million (2005:
US$16.7 million; 2004: US$6.6 million) for work on this project.
No fees were payable by HSBC to KPMG for the following types of services: internal audit services, valuation and
actuarial services, services related to litigation, and services related to recruitment and remuneration.
‘Audit fees for HSBC Holdings’ statutory audit’ are fees payable to KPMG Audit Plc for the statutory audit of the
consolidated financial statements of HSBC and the separate financial statements of HSBC Holdings. They exclude
amounts payable for the statutory audit of HSBC Holdings’ subsidiaries which have been included in ‘Fees payable
to KPMG for other services provided to HSBC’.
The following is a description of the types of services included in ‘Fees payable to KPMG for other services provided
to HSBC’:
Audit related services
– ‘Audit of HSBC’s subsidiaries pursuant to legislation’ includes fees payable to KPMG for the statutory audit of
HSBC’s subsidiaries.
– ‘Other services pursuant to legislation’ include services for assurance and other services that are in relation to
statutory and regulatory filings, including comfort letters and interim reviews.
Tax services
– ‘Tax services’ include tax compliance services and tax advisory services.
Other services
– ‘Services relating to information technology’ include advice on IT security and business continuity and
performing agreed upon IT testing procedures.
– ‘Services related to corporate finance transactions’ include fees payable to KPMG for transaction-related work,
including US debt issuances.
– ‘All other services’ include other assurance and advisory services such as translation services, ad-hoc accounting
advice and review of financial models.