Telstra 2010 Annual Report Download - page 122

Telstra Corporation Limited and controlled entities
107
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, subject to confirmation by both
management and EY that the provision of these services does not
compromise auditor independence. All EY engagements approved
by the Chief Financial Officer are reported to the Audit Committee
at the next 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 relate 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
reports, audit related and tax. These services include various
reviews and non assurance services across the Group.
8. Remuneration of auditors
Telstra Group
Year ended 30 June
2010 2009
$m $m
Audit fees
Ernst & Young has charged the following amounts for auditing and reviewing the financial reports . . . . 8.521 6.672
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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.064 2.708
Tax (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.277 0.129
Other services (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.129 1.389
Total other services provided . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.470 4.226