Audit and Non-Audit Services Approval Policy 110104

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AUDIT AND NON-AUDIT SERVICES APPROVAL POLICY November 1, 2004AUDIT AND NON-AUDIT SERVICES APPROVAL POLICY TABLE OF CONTENTS 1.0 OVERVIEW...........................................................................................................................1 2.0 POLICY...................................................................................................................................1 3.0 PROCEDURES FOR PRE-APPROVAL OF NON-AUDIT SERVICES ................1 4.0 DELEGATION.....................................................................................................................2 5.0 REPORTING....2 iAUDIT AND NON-AUDIT SERVICES APPROVAL POLICY 1.0 OVERVIEW This document outlines the CPP Investment Board’s policy for Audit Committee approval of services provided by the external auditor. This policy is consistent with the Canadian Independence Standard (“the Standard”) issued by the Canadian Institute of Chartered Accountants (“CICA”) and effective January 1, 2004. 2.0 POLICY Audit Services Audit services include all services and other procedures that the external auditor is required to perform to form an opinion on, or provide a review report in respect of, the financial statements. The engagement of the external auditor (including associated fees) is annually approved by the Audit Committee. All services considered to be a necessary part of the audit are considered to be included in this ...

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• Publié par: Maceb
• Nombre de lectures: 85
• Langue: Slovak

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AUDIT AND NON-AUDIT SERVICES

APPROVAL POLICY

November 1, 2004

AUDIT AND NON-AUDIT SERVICES APPROVAL POLICY

i

TABLE OF CONTENTS

1.0

OVERVIEW...........................................................................................................................1

2.0

POLICY...................................................................................................................................1

3.0

PROCEDURES FOR PRE-APPROVAL OF NON-AUDIT SERVICES ................1

4.0

DELEGATION.....................................................................................................................2

5.0

REPORTING.........................................................................................................................2

AUDIT AND NON-AUDIT SERVICES APPROVAL POLICY

1

1.0

OVERVIEW

This document outlines the CPP Investment Board’s policy for Audit Committee

approval of services provided by the external auditor. This policy is consistent with

the Canadian Independence Standard (“the Standard”) issued by the Canadian

Institute of Chartered Accountants (“CICA”) and effective January 1, 2004.

2.0

POLICY

Audit Services

Audit services include all services and other procedures that the external auditor is

required to perform to form an opinion on, or provide a review report in respect of,

the financial statements.

The engagement of the external auditor (including associated fees) is annually

approved by the Audit Committee. All services considered to be a necessary part of

the audit are considered to be included in this annual approval.

Non-Audit Services

Tax Services

Tax services not required for the audit are permitted provided that the independence

of the auditor is not impaired, but must be specifically pre-approved in accordance

with the pre-approval process described in section 3.0.

Other Non-Audit Services

Any services (other than those specifically prohibited by the Standard

1

) that are not

considered to be audit or tax services must be specifically pre-approved in

accordance with the pre-approval process described in section 3.0.

3.0

PROCEDURES FOR PRE-APPROVAL OF NON-AUDIT SERVICES

Recurring non-audit services:

The Vice President - Finance and Operations will

submit a list of recurring non-audit services together with an estimate of expected

expenditures for the fiscal year to the Audit Committee for pre-approval on an

annual basis. Any anticipated variance from this list or estimates must be specifically

pre-approved by the Audit Committee.

Non-recurring non-audit services:

All requests for non-recurring non-audit

services provided by the external auditor shall be approved for recommendation to

the Audit Committee by the Vice President – Finance and Operations and the

President. Prior to each request, the external auditor shall provide written

1

The following non-audit services are prohibited by the CICA Auditor Independence Standard for listed

companies: expert services including litigation support, legal services, management functions, HR services and

corporate finance services. The following non-audit services may be provided only if it is reasonable to

conclude that the results of these services will not be subject to audit procedures: bookkeeping and accounting

services, financial information systems design and implementation, actuarial services, valuation services, and

internal audit services.

AUDIT AND NON-AUDIT SERVICES APPROVAL POLICY

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confirmation that the services to be provided do not impair their independence. Best

effort will be made to submit requests for pre-approval of non-recurring non-audit

services to a regularly scheduled Committee meeting. Non-recurring non-audit

services with estimated fees of $50,000 or less may be pre-approved in accordance

with Section 4.0 below. No work by the external auditor may commence until pre-

approval has been obtained.

4.0

DELEGATION

The Committee may delegate pre-approval authority to one or more Committee

members. The member or members to whom such authority is delegated must

report any such decisions to the Committee at its next meeting.

The Committee approves the delegation of pre-approval authority to the Chair of

the Audit Committee for non-audit services that have not been pre-approved by the

Committee provided that the total estimated fees for such non-audit services do not

exceed $50,000. Any such pre-approval by the Chair of the Audit Committee shall

have the same authority and effect as if it had been granted by the Committee.

5.0

REPORTING

Management shall provide a semi-annual written report to the Committee

summarizing expenditures in respect of tax services and other non-audit services.

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