Appointment and monitoring of the external auditor
The Navigator Global Investments Limited Audit and Risk Committee (the Committee) is responsible for making recommendations to the Board of Navigator Global Investments Limited regarding the appointment, re-appointment or replacement of the external auditor. In making those recommendations, the Committee is authorised to conduct periodic reviews of the performance of the audit firm.
The Committee has delegated authority from the Board to approve the scope of work and fees of the external auditor.
External auditor independence
The Committee also monitors the effectiveness, objectivity and independence of the external auditor. In respect of the independence of the external auditor, the following policies apply:
- the external auditor must remain independent of the Navigator Group at all times and comply with the requirements of applicable laws, rules and regulations dealing with auditor independence;
- the external auditor must monitor its independence and provide a declaration to the Committee for each full year and half year period;
- the external auditor is not to provide non-audit services under which the auditor assumes the role of management, becomes an advocate for the Navigator Group, audits its own professional expertise or creates a mutual or conflicting interest between the auditor and the Navigator Group;
- significant permissible non-audit assignments awarded to external auditors must be approved in advance by the Committee or, between Committee meetings, the Committee Chair; and
- all non-audit services provided are to be regularly reported to the Committee.
The policy on auditor independence applies to services supplied by the audit firm and their related firms to the Navigator Group and its related entities.
Rotation of external audit partners
The lead audit partner and review partner of the external auditor must be rotated at least every five years. The previous lead audit partner and review partner is prohibited from reinvolvement in providing audit services for two years following rotation.