Telstra 2007 Annual Report Download - page 60

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Telstra Corporation Limited and controlled entities
Corporate Governance and Board Practices
Board policy to conduct a competitive tender every three to five years. Ernst & Young was appointed as the
Auditor-General’s subcontractor as a result of a competitive tender for the 2005 financial year.
The Audit Committee approves the provision of recurring audit services as part of the annual approval of the
audit plan. In accordance with SEC requirements, additional audit and non-audit services provided by the
external auditors during the 2007 financial year were pre-approved by the Audit Committee in accordance
with the company’s process. This is set out in greater detail in the Director’s report.
Restrictions on performance of non-audit services and auditor independence
The Audit Committee provides an annual, formal, written report detailing the nature and amount of any
non-audit services rendered by Ernst & Young during the most recent fiscal year and an explanation of how
the provision of these non-audit services are compatible with auditor independence. Details of amounts
paid or payable to the auditor for non-audit services provided during the year are located in note 8 to our
consolidated financial statements.
The lead Ernst & Young audit partner rotated after the signing of the audit opinion for the 2007 financial
year.
Our external auditors attend our annual general meeting and are available to answer shareholder questions
about the conduct of our audit and the preparation and content of the auditor’s report.
Audit Committee Processes
The Audit Committee:
• at least annually meets separately with our external auditors to discuss any matters that the Audit
Committee or our auditors believe should be discussed privately;
• reviews the Directors’ report and the Corporate Governance section of the annual report and
considers whether the information is clear and consistent with the Audit Committee’s knowledge
about Telstra and its operations. In addition, prior to release, the Audit Committee reviews key
elements of other related regulatory filings and discusses them with the external auditors as
appropriate; and
• reviews the interim and annual financial statements and preliminary announcements and discusses
them with the external auditors prior to their release to determine whether they are complete, reflect
appropriate accounting principles, contain appropriate disclosures and are consistent with the
information known to the Audit Committee.