TRANSPARENCY REPORT | LEGAL STRUCTURE, OWNERSHIP AND GOVERNANCE
Independent non-executives (INEs)
Between October 2020 and March 2021 there were two INEs, Dame Teresa
Graham DBE and Vijay Thakrar, appointed after the retirement of the
previous two INEs, Sir Ian Byatt and Roger Alexander.
INEs sit on the PIC but are not members
of RSM UK Audit LLP and do not sit on its
Management Board. This provides a safeguard
to the INEs' independence from potential
INEs are appointed to serve for a period of
three years, renewable by joint agreement of
the INE and the firm. Either party can terminate
the appointment with one month's notice.
Currently the RSM UK Audit LLP Management
Board have opted to have two INEs. The Code's
reference to the proportionality principle of
good regulation applies because the firm
currently audits a relatively small number of
public interest entities compared to the Big
Four firms. This will be kept under review.
Each INE is required to complete the firm's
annual independence declarations to ensure
that they do not have any relationships
with entities that the firm audits which may
compromise the firm's or their independence.
The INEs are required to abide by
the PIC terms of reference including
complying with relevant requirements,
such as insider dealing legislation,
in relation to information that they
might become aware of through their
involvement with the firm.
Performance of duties
By invitation, the firm's INEs attend relevant
Management Board meetings and are entitled to
raise any matters relevant to audit quality they
deem fit. In addition to agendas and supporting
papers, the Management Board provides any
information which the INEs request and the INEs
are invited to interrogate any matter they wish.
The INEs also, independently, meet the Head of
Audit Quality, enquiring of them the resource
available to them, its adequacy, and any matters
they wish to raise with the INEs.
The INEs are aware of how the firm safeguards
against conflicts of interest, independence
challenges, how it trains partners and staff