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47
Both Unilever and the auditors have for many years had
safeguards in place to avoid the possibility that the auditors’
objectivity and independence could be compromised. The
Committee reviewed the report from PricewaterhouseCoopers on
the actions they take to comply with the professional and
regulatory requirements and best practice designed to ensure
their independence from Unilever.
The Committee also reviewed the statutory audit,
auditrelatedand non-audit related services provided by
PricewaterhouseCoopers, and compliance with Unilever’s
documented approach, which prescribes in detail the types
ofengagements, listed below, for which the external auditors
canbeused:
• statutory audit services, including audit of subsidiaries;
• audit related engagements – services that involve attestation,
assurance or certification of factual information that may be
required by external parties;
• non-audit related services – work that our auditors are best
placed to undertake, which may include:
– tax services – all significant tax work is put to tender;
– acquisition and disposal services, including related due
diligence, audits and accountants’ reports; and
– internal control reviews.
Several types of engagements are prohibited, including:
• bookkeeping or similar services;
• systems design and implementation related to financial
information or risk management;
• valuation services;
• actuarial services;
• internal audit; and
• staff secondments to a management function.
All audit related engagements over €250,000 and non-audit
related engagements over €100,000 require specific advance
approval of the Audit Committee Chairman. The Committee
further approves all engagements below these levels which have
been authorised by the Group Controller. These authorities are
reviewed regularly and, where necessary, updated in the light of
internal developments, external developments and best practice.
Audit Committee terms of reference
The Audit Committee’s terms of reference are reviewed annually
by the Committee taking into account relevant legislation and
recommended good practice. The terms of reference are
contained within ‘The Governance of Unilever’ which is available
on our website at
www.unilever.com/investorrelations/corp_governance.
Board Assessment of the Audit Committee
The Board evaluated the performance of the Committee and the
Committee carried out a self-assessment of its performance, and
concluded it was performing effectively.
Kees Storm
Chairman of the Audit Committee
Charles Golden
Byron Grote
Unilever Annual Report and Accounts 2011
Report of the Directors Governance