Rules concerning change of auditor authorised to audit financial statements
We follow the rule of rotating the audit partner responsible for each engagement every five years, to conform with Article 134 of the Act on Registered Auditors, Audit Firms and Public Supervision dated 11 May 2017 (unified text, Journal of Laws of 2022, no. 1302) (“Act of Registered Auditors”).
Appointment and replacement of the Company’s auditor is approved by the Company’s Supervisory Board, which receives and acts on recommendations received from the Audit Committee. The Company has an Audit Committee whose responsibilities include among other things evaluation of, and recommendations for the replacement of, external auditors of the Company, including ensuring the fulfilment of related disclosure requirements.
Additionally, as a company regulated by Polish securities laws, we are bound by the legal requirements of Decree of the Council of Ministers of 29 March 2018 concerning the submission of current periodical information by the securities’ issuers and also the conditions of recognising as equal the information demanded by the national lawful regulation of a country which is not a member of the European Union.
Rules for selection of an independent auditor within an audit firm to audit GTC S.A.’s financial statements, as well as the rules for conducting authorised non-audit services by the audit firm
On 15 November 2022, the supervisory board of GTC approved the rules for the selection of an independent auditor according to the Act on Registered Auditors which were adopted by the Audit Committee of the Company on 15 November 2022.The selection of an audit firm to audit and review the financial statements of the Company is the responsibility of the Supervisory Board. Decisions are taken in the form of an official resolution of the Supervisory Board, taking into account the prior recommendations of the Audit Committee.The Audit Committee assesses the independence of the statutory auditor and consents to the provision of authorised non-audit services to the Company. The consent can be expressed after the assessment of the independence of the statutory auditor and after obtaining from the statutory auditor a confirmation that the provision of authorised non-audit services will be carried out in accordance with the independence requirements laid down for such services in the rules of professional ethics and standards of performing such services.
Main assumptions of the policy for selecting an audit firm for the purpose of conducting an audit: