UNBOUNCE - EXAMPLE PAGE-REPORT-ENTERPRISE DOCUMENT-KINGSPAN - Flipbook - Page 105
External auditor
The Audit & Compliance Committee
has responsibility for overseeing the
Group’s relationship with the external
auditor including reviewing the quality
and effectiveness of their performance,
their external audit plan and process,
their independence from the Group,
their appointment and their audit
fee proposals.
g a requirement that the PIE
changes its statutory auditor
every ten years (following
rotation, the statutory audit
firm cannot be reappointed for
four years);
Performance and audit plan
Following the completion of the 2020
year end audit, the committee carried
out a review of the effectiveness of the
external auditor and the audit process.
This review involved discussions
with both Group management and
internal audit and feedback provided
by divisional management. The
committee continues to monitor
the performance and objectivity of
the external auditors and takes this
into consideration when making
its recommendations to the Board
on the remuneration, the terms of
engagement and the re-appointment,
or otherwise, of the external auditors.
g restrictions on the entitlement
of the statutory auditing firm to
provide certain non-audit services.
Prior to commencement of the
2021 year end audit, the committee
approved the external auditor’s work
plan and resources and agreed with
the auditor’s various key areas of focus,
including accounting for acquisitions
and warranty provisions.
During the year the committee met
with the external auditor without
management being present. This
meeting provided the opportunity for
direct dialogue and feedback between
the committee and the auditor, where
they discussed inter alia some of the
key audit management letter points.
EU Audit Reform
The regulatory framework for the
Group’s statutory audit is governed
by EU legislation under Directive
2014/56/EU and Regulation EU No.
537/2014. EU Audit reform legislation
is applicable in the Member States of
the European Union, including Ireland.
Under this legislation, Kingspan
Group plc is considered a Public
Interest Entity (“PIE”). Key
developments falling from the
implementation of this legislation are:
g a requirement that certain
procedures are followed for the
selection of the new statutory
auditor; and
Standard for Auditors (Ireland) 2020.
The external auditor also confirmed
that they were not aware of any
relationships between the Group and
the firm or between the firm and
any persons in financial reporting
oversight roles in the Group that may
affect its independence.
Independence and objectivity
The committee is responsible for
ensuring that the external auditor is
objective and independent. EY was
appointed as the Group’s auditor on 1
May 2020, following a formal tender
process in which a number of leading
global firms submitted written
tenders and presentations. The lead
audit partner is rotated every five
years and is currently Pat O’Neill.
Non-audit services
To further ensure independence,
the committee has a policy on the
provision of non-audit services by
the external auditor that seeks to
ensure that the services provided by
the external auditor are not, or are
not perceived to be, in conflict with
auditor independence. By obtaining
an account of all relationships
between the external auditor and
the Group, and by reviewing the
economic importance of the Group
to the external auditor by monitoring
the audit fees as a percentage
of total income generated from
the relationship with the Group,
the committee ensured that the
independence of the external
audit was not compromised. The
committee’s policy on the provision
of non-audit services by the Group’s
external auditor is fully compliant
with EU audit reform legislation.
The committee received confirmation
from the external auditor that they
are independent of the Group under
the requirements of the IAASA Ethical
An analysis of fees paid to the
external auditor, including the
non-audit fees, is set out in Note 5
and below:
Kingspan Group plc has fully complied
with such EU Audit Reform. With
regards audit firm rotation, EY, was
selected as the external auditor for
the financial year commencing 1
January 2020.
AUDIT V NON-AUDIT SERVICES (€m)
Audit Services
Non-Audit Services
2021
3.7
2020
2.7
2019
2.6
0.9
2018
2.0
0.7
Kingspan Group plc Annual Report & Financial Statements 2021
0.3
0.1
Report of the Audit & Compliance Committee
