A summary of Barclays’ Policy on the Provision of Services by the Group Statutory Auditor can be found below. The Policy applies to our current auditor, PwC, as well as to our incoming auditor, KPMG.
External auditor objectivity and independence: non-audit services
The overriding principle of the policy is that the Group should only engage the Auditor to supply non-audit services in exceptional circumstances.
The Board Audit Committee oversees compliance with the Policy and has the sole authority to approve the use of the Auditor for non-audit services. In addition, the Committee has pre-approved allowable services where the engagement fees are below £100,000 (or £25,000 in the case of certain taxation services). Group Finance and Barclays Corporate Secretariat deal with day-to-day administration of the Policy, facilitating requests for approval.
Details of the services that are prohibited and allowable are set out below.
Services that are prohibited include:
- Design and implementation of financial information systems
- Internal control and risk management services
- Appraisal or valuation services
- Actuarial services
- Internal audit outsourcing
- Provision of management and human resources functions
- Broker or dealer, investment advisor or investment banking services
- Legal services
- Tax services (including the preparation of tax forms, payroll tax and the provision of tax advice)
- Expert services unrelated to the Group Statutory Audit
- Transaction-related and restructuring services.
Allowable services that the Board Audit Committee considers for approval include:
- Statutory audit and audit related services and regulatory non-audit services
- Other attest and assurance services
- Training, surveys and software
- Risk management and controls advice
- Transaction support
- Limited taxation services (subject to the FRC Ethical Standard derogations)
- Business support and recoveries
- Translation services.