Effective date: May 10, 2021
Purpose
The external auditor for Queen’s University provides non-audit services throughout the year, such as services relating to governance, risk, financing, valuations, costing, human resources, information technology, forensic, actuarial, management consulting, etc. These services are often provided on an as needed basis and are of significant value to the University, especially given the extensive knowledge the external auditors have of University operations.
As part of its duties, the Audit and Risk Committee (ARC) of the Board of Trustees agrees on a process for pre-approving and reporting of non-audit services provided by the external auditor, to ensure auditor independence.
This process outlines the steps required to obtain pre-approval for non- audit services provided by the external auditor.
Process
Fees or potential fees greater than $50,000
For all non-audit engagements with a proposed or potential fee greater than $50,000, pre-approval is required from the Chair, on behalf of ARC. This authority may be delegated to the Vice-Chair if the Chair is not available. Were there to be proposed non-audit engagements of significant magnitude or cumulative effect, the ARC relies on the Chair’s discretion regarding appropriate consultation with other Committee members. The Chair, at each meeting, will provide an update to the Committee of any new non-audit services approved.
The external auditor will seek direct permission to undertake engagements, providing a letter to the Vice-Principal Finance and Administration (VPFA) with a copy to the Chair of ARC. The letter will confirm that the aforementioned project does not impair their independence as the external auditor of the University and will seek the necessary pre-approvals to accept the engagement.
Non-audit services provided by the external auditor may not commence until the unit has obtained pre-approval supporting documents from the office of the VPFA.
Fees or potential fees less than $50,000
Given the nature and consistency of many of the non-audit services provided by the external auditor, and the need to have the engagement commence in a timely manner, the Chair does not need to pre-approve non-audit services that have a fee of $50,000 or lower.
The external auditor will notify the Associate VPFA of all engagements less than $50,000.
Annual reporting to ARC
At least annually, the external auditor is required to present a summary of invoices and engagements to the ARC.
Approved by the Audit Committee of the Board of Trustees on May 3, 2021.
Date for next review: May 3, 2026