Guidelines for Auditors & Associated Parties
These guidelines are with respect to work other than auditing or for persons associated to the auditor for Eqology ASA (the “Company”).These guidelines are adopted by the Board of Directors in Eqology ASA (the “Company”). The guidelines shall be adopted by the boards of all of the Company’s subsidiaries.
1. These guidelines apply to the auditor who performs the audit of the Company or the Company’s subsidiaries, including, but not limited to, the corporate audit.
2. The auditor’s primary task is to undertake the necessary audit as required by law and to ensure professional standards with regard to the accuracy, competence and integrity meet the law and appropriate professional standards. If the auditor and/or an associated person get too many contract that are not related to the audit, this may compromise the Auditor’s position and diminish the public confidence in the auditor’s integrity and objectivity of the Company.
3. The relevant decision-making body in the Company should therefore consider carefully, before the accountant or an associated person gets assignments that does not relate to audit, whether the assignment is (a) clearly of benefit to company and (b) does not jeopardise the auditor’s integrity and impartiality in light of the following elements:
(i) Audit Work should be the auditor’s highest priority, and other work must not be promoted at the expense of the audit work;
(ii) The company’s management should ensure that there is no risk of conflict of interest where the auditor performs both audit work and other work for the company;
(iii) Engagements relating to the audit should not be given to the auditor unless it can be justified that it is of particular benefit to the company that the auditor undertakes it. Examples are as follows:
- Auditor standard company law confirmations (valuation and payment confirmations etc. in connection with share issues, mergers, demergers, etc.),
- Auditor firsthand knowledge about the current business or the relevant business area,
- Auditors or associated person know-how and expertise in the relevant jurisdiction or accounting standard.
5. A person associated with the auditor means any person who is either a partner or employee in the same company as an accountant, or a company formally associated with the auditor, including companies that provide legal aid and assistance in connection with transactions.
6. Auditor’s fees for work, not related to the audit, should if possible be determined in advance. If a predetermined or a possible fee for a single contract that is not related to audit exceeds 10 percent of the total audit fees in the preceding financial year, the auditor’s mandate to proceed must be approved by the Board of the Company. The company’s management will keep the Board informed of major assignments related to other work that is being given to the auditor or a person associated with the auditor.
7. The company’s management shall on an annual basis provide the Board with an overview of the auditors’ fees divided into statutory auditing work and work that is not related to the audit, where the actual work that is not related to the audit shall be clearly stated.