Auditors

External auditors' independence

External auditors' independence and non-audit work The Audit & Risk Committee, with the help of the Head of Internal Audit, followed a process to review and monitor the external auditors' independence and objectivity and the effectiveness of the audit process. Further information can be found on page 44 of the 2010 Annual Report.

Engagement of non-audit services

The Board has accepted the Committee's recommendation on a policy on the engagement of the external auditors to supply non-audit services. The policy has been adopted by the Board and as a general rule the auditor will not be engaged to provide any additional services other than tax or accountancy advice and circulation audits. There may, however, be circumstances where it could be in the Company's and shareholders' interests if the auditor was engaged. Such circumstances are likely to be relating to either exceptional transactions or deemed not to be of a material nature. In all cases, the engagement of the auditor for non-audit work must be approved in advance by the Chairman of the Committee.