External auditr appintment and independence External auditr appintment and independence Page 1 f 5
Cntents 1 Purpse... 3 2 Cverage / Scpe... 3 3 Values & Cmmitments... 3 4 Plicy... 3 4.1 Selectin and appintment f external auditr... 3 4.2 Independence f external auditr... 4 4.3 Rtatin f external audit engagement partners... 4 4.4 Recruitment f external audit partners and emplyees... 4 5 Links / interactin with ther plicies... 4 6 Attachments... 4 7 Prcedures... 5 External auditr appintment and independence Page 2 f 5
1 Purpse T dcument the prcess fr the appintment f the external auditr t cnduct the audit f the financial statements f Australian Pipeline Trust and APT Investment Trust and their cntrlled entities (Audit) and fr mnitring the independence f the external auditr. With respect t that independence, t dcument the plicy cncerning rtatin f the lead partner and the review r cncurring partner f the external auditr. 2 Cverage / Scpe See Purpse abve. 3 Values & Cmmitments APA Grup is cmmitted t designing and implementing effective and ptimal structures, systems and prcesses t enable delivery f its financial, custmer, peple and cmmunity bjectives. Strng prcesses with respect t the appintment and preservatin f the independence f the external auditr are fundamental t achieving thse gals. 4 Plicy 4.1 Selectin and appintment f external auditr The prcedure fr the selectin and appintment f the external auditr t cnduct the Audit is based n the fllwing principles: Australian Pipeline Limited, the respnsible entity f Australian Pipeline Trust and APT Investment Trust, is respnsible fr appinting the external auditr fr the Audit; the Audit & Risk Management Cmmittee (Cmmittee) f the bard f Australian Pipeline Limited (Bard) is respnsible fr implementing a prcess t select the external auditr and making a recmmendatin t the Bard based n the Cmmittee s assessment f the respnses received frm and interviews with candidates fr the rle; the assessment f respnses frm candidates fr the rle takes int accunt a number f key criteria, including but nt limited t audit apprach and methdlgy, reputatin, independence, internal gvernance prcesses, key persnnel and resurces, and cst; and nce the assessment prcess has been cmpleted, the Cmmittee infrms the Bard f the prcess adpted in undertaking the review, the external auditr recmmended by the Cmmittee and the reasns fr that recmmendatin. External auditr appintment and independence Page 3 f 5
4.2 Independence f external auditr The external auditr s independence is a key factr in ensuring that the financial statements f Australian Pipeline Trust and APT Investment Trust are true and fair, and meet high standards f financial integrity. The Cmmittee mnitrs the independence f the external auditr, including any relatinships with APA Grup r any ther persn r entity that may impair r cmprmise, r appear t impair r cmprmise, the external auditr s independence. Independence may be impaired r cmprmised by the prvisin f services f a nnaudit nature t APA Grup, depending n the materiality f thse services and the fees charged fr them. Therefre, the Cmmittee has apprved the Nn-Audit Activities Plicy that: specifies categries f nn-audit services that the external auditr may nt be engaged t prvide and ther categries f thse services that the external auditr may be engaged t prvide, subject t specified apprvals and fee limits, and prvides a prcess fr apprval f the permitted services. The Cmmittee requires the external auditr t declare in writing its independence every six mnths cinciding with the preparatin f the half-year and full-year financial statements, and the Cmmittee prvides its wn assessment f the external auditr s independence t the Bard annually. 4.3 Rtatin f external audit engagement partners The lead partner and the review r cncurring partner f the external auditr must be rtated at least every five years, fllwed by a tw year minimum time ut perid during which they may nt take part in the Audit. 4.4 Recruitment f external audit partners and emplyees APA Grup will nt recruit, as either directrs r as emplyees in senir management psitins, any persn wh within the preceding tw years has been: a partner f APA Grup s external audit firm, r an emplyee f the external audit firm invlved in the Audit. 5 Links / interactin with ther plicies Audit & Risk Management Cmmittee Charter Nn-Audit Activities Plicy 6 Attachments Nil External auditr appintment and independence Page 4 f 5
7 Prcedures Six mnthly independence declaratins Auditr t Audit & Risk Management Cmmittee Senir management t Audit & Risk Management Cmmittee Annual independence declaratins Audit & Risk Management Cmmittee t Bard External auditr appintment and independence Page 5 f 5