External Auditor Selection & Rotation

Rigorous process for selection and appointment

The procedures for the selection and appointment of BlueScope Steel's external auditor is based on the following framework:

  • the Board is responsible for appointing the external auditor, subject to confirmation by shareholders at the Company's Annual General Meeting; and
  • the Audit and Risk Committee is responsible for implementing a selection process and making a recommendation to the Board based on their assessment of the responses received from potential external auditors.  In making any recommendation, the Audit and Risk Committee will consider involving certain senior executives to comment on the responses received.

The assessment of responses from potential external auditors takes into account a number of key criteria, including audit approach and methodology, internal governance processes, global resources, key personnel and cost.

Once the review process has taken place the Audit and Risk Committee provides the Board with information concerning the process adopted in undertaking the review, the recommended external auditor and the reasons for final recommendation.

Note: This a summary only and does not constitute or represent the conditions on which BlueScope Steel will conduct any tender for the external auditor or assess any responses received.

Rotation of external audit engagement partners

The Company requires Key Audit Partners of its external auditor (including the Lead Audit Engagement Partner, the Independent Review Partner and any other Partners who make key decisions or judgements in relation to the audit of the consolidated Group, Parent Entity and material Subsidiaries) to rotate in accordance with current professional standards, including Section 324DA of the Corporations Act 2001. The Lead Audit Engagement Partner and Independent Review Partner are required to rotate every 5 years. All other Key Audit Partners are required to rotate every 7 years.