| TRANSPARENCY REPORT
81
LEGAL STRUCTURE, OWNERSHIP AND GOVERNANCE
in fulfilling ethical norms, whether any such
issues have arisen and how they have been
addressed. They are involved in key discussions
and decisions around the firm's independence
as auditors.
The INEs' involvement with the
Management Board provides a
useful check and balance on
executive action.
This, and Vijay Thakrar's membership of the
RSM UK Holdings Limited Board, gives the INEs
access to a degree of confidential information
about the operations of both RSM UK Audit LLP
and RSM UK Holdings Limited and therefore
allows them to consider the significant risks
facing the firm.
On an annual basis the Head of Audit and Tom
McMorrow, member of the PIC, ensure that the
INEs have performed their duties in relation
to independence.
Fundamental disagreements
The firm makes a public commitment to
support the INEs in their work. To ensure that
their views are properly addressed, the firm
has established a protocol for dealing with
any fundamental disagreement the INEs may
have at any time with the Executive of the
Firm. Ease of communication between the PIC
and the Executive, the potential for several
layers of consultation to be deployed, access
to alternative dispute resolution machinery, if
necessary, and the right to resign and make
the fact of it public are the key features of
the protocol.
The INEs have a contractual right to obtain
outside opinions (at the firm's expense) and to
disclose to any relevant authority the fact and
nature of any fundamental disagreement with
the firm's management that cannot otherwise
be resolved.
They are also provided with relevant indemnity
insurance in respect of legal action against them.