The Audit Committee is responsible for the development, implementation and monitoring of the Company’s policies on external audit. The policies, which were reviewed by the Committee during the year, are designed to maintain the objectivity and independence of the external auditors. Together they regulate the appointment of former employees of the external audit firm to positions in the Group and set out the approach to be taken when using the external auditors for non-audit work. As a general principle the external auditors are excluded from consultancy work and cannot be engaged by GKN for other non-audit work unless there are compelling reasons to do so. Any proposal to use the external auditors for non-audit work must be submitted to the Finance Director (who will, depending on the nature of the service, seek the prior authorisation of the Chairman of the Audit Committee) for approval prior to their appointment.