The Terms of Reference of the Public Interest Body have been drafted having regard to the requirements of the Audit Firm Governance Code (the Code) and other items that the Public Interest Body might reasonably consider. The Terms of Reference will continue to evolve as the Code evolves.
The purpose of the Public Interest Body is to enhance stakeholder confidence in the public interest aspects of the UK firm’s activities, through the involvement of Independent Non-Executives. In particular the Independent Non-Executives shall have oversight of the UK firm’s policies and procedures for promoting audit quality, helping the UK firm to secure its reputation more broadly including in its non-audit business, and reducing the risk of firm failure.
The Public Interest Body enables the UK firm to fulfil certain responsibilities set out in the Code as described in Annex 1.
The Public Interest Body’s principal point of contact with the UK firm is the Senior Partner.
The Independent Non-Executives shall also have regular contact with the UK firm’s Ethics Partner.
The Public Interest Body comprises up to eight Independent Non-Executives (at least one of whom has appropriate audit or accounting experience), at least one member from the UK firm’s Management Board, and at least one member of the UK firm’s Supervisory Board.
The Independent Non-Executives shall be the majority on the Public Interest Body.
Each Independent Non-Executive shall hold office for a term not exceeding four years, and for no more than nine years in aggregate.
The Chairman shall be an Independent Non-Executive. The Chairman shall from time to time be elected by the members of the Public Interest Body from among the Independent Non-Executives upon the nomination of the Senior Partner after consultation with the members of the Public Interest Body. No person shall be Chairman for more than six years in aggregate.
The Supervisory Board approves the Independent Non-Executives from candidates nominated by the Senior Partner, following consultation between the Senior Partner and the Supervisory Board.
The Senior Partner decides which members of the Management Board will sit on the Public Interest Body and the Supervisory Board decides which of its members will sit on the Public Interest Body. And any member of the UK firm shall attend Public Interest Body meetings if requested to do so by the Public Interest Body.
The Public Interest Body meets at least four times during the year. The Independent Non-Executives also meet as a separate group to discuss matters relating to their remit.
The procedure for dealing with any fundamental disagreement that cannot otherwise be resolved between the Independent Non-Executives and members of the UK firm’s management team and/or governance structures is set out in Annex 2.
1 November 2017
INDEPENDENT NON-EXECUTIVES’ CONTACT DETAILS
London, PwC United Kingdom