Auditor change splits councillors
WHETHER to continue with, or change, auditors who have served the council for nearly two decades was enough to divide councillors at Mosman Park last month.
“It’s appropriate to rotate because for good corporate governance, it’s good to refresh these issues with a refreshed set of eyes,” Cr Andrew Maurice said.
Cr Zenda Johnson said changing would not be a good way to treat “longevity and loyalty” of the council’s current auditors, Burswoodbased Macri Partners, which has checked the Town’s books for 18 years. However. the Local Government Act says auditors and those creating a council’s annual financial report should not serve terms for more than five financial years.
“Use of the same audit firm of a long period of time may create a familiarity threat, impairing the actual or perceived independence and objectivity of the auditor,” a council staff report said.
It was recommended Macri Partners be excluded from future auditing.
Councillors agreed that new quote be sought for the work by other firms in 2016-17, despite Cr Johnson and Cr Brett Pollock voting against.