TPG is also updating its Audit Committee Charter to meet new US requirements and the company expects these changes to be ready shortly once the Act and subsequent legislation are clarified.
The Supervisory Board of TPG issued its Auditor Independence policy in April 2002. This policy already contained tight controls, including the rotation of the lead audit partner every four years and a clear definition of the services that the external auditor can provide as well as those that are prohibited. The policy also requires a tender process for defined audit-related and non-audit services, and approval by the Audit Committee for certain specified services. Furthermore, a review of the auditor's performance every three years is required.
The updated policy has been expanded to comply with the latest developments in US legislation. Key amendments include expanding the range of services that the auditor is forbidden to undertake, further restrictions on hiring TPG and Audit staff as well as pre-approval of non-audit services by the Audit Committee.
Peter Bakker, Chairman and CEO of TPG says that: "This initiative by the Audit Committee makes TPG one of the first companies to respond to this vital new US legislation. This highlights how seriously the company regards the integrity of its financial information. TPG recognises the crucial roles played by its external auditor, independent Audit Committee and its own internal auditors in the integrity of its financial data."
"The Auditor Independence policy" (20 Kb) is as a acrobat reader PDF file for your reference here.
