Auditor

auditor1Appointment of the audit firm by Giełda Papierów Wartościowych w Warszawie S.A. is defined in its internal document: Audit Firm Selection Policy and Procedures, drafted in accordance with:

  • Regulation 537/2014 on specific requirements regarding statutory audit of public-interest entities, and
  • Act of 11 May 2017 on Auditors, Audit Firms, and Public Supervision.

The document defines the maximum period in which an audit firm or a member of its network may provide audits of financial statements. The period is five years. After the end of the period, the audit firm or a member of its network may not be selected to audit financial statements of GPW for a period of another 4 years.

The selection of an audit firm is a responsibility of the Exchange Supervisory Board. The selection of an auditor is opened with a resolution of the Exchange Supervisory Board concerning the selection of an auditor. Next, audit firms are invited to submit offers. The Exchange Supervisory Board selects the offer of an audit firm following a procedure which ensures independent and equitable selection of the best offer according to a number of criteria (including experience and position of the audit firm, knowledge of the financial market, audit services provided to public companies, price of the service). The Audit Committee is responsible for presenting a recommendation of an audit firm to audit financial statements to the Exchange Supervisory Board. As the body responsible for the selection of the auditor, the Exchange Supervisory Board passes a resolution appointing the auditor. The Exchange Management Board signs the contract with the audit firm.

The entity authorised to audit the separate financial statements of GPW and the consolidated financial statements of the GPW Group for the financial year ended 31 December 2017 is KPMG Audyt spółka z ograniczoną odpowiedzialnością spółka komandytowa (“KPMG Audyt”), entered in the list of entities authorised to audit financial statements, entry no. 3546.

The agreement between GPW and KPMG Audyt was concluded on 21 October 2015 and covers the audit of the annual consolidated financial statements for the financial years 2015, 2016 and 2017 and the review of the interim separate and consolidated financial statements for each quarter of 2016, 2017 and 2018. According to current arrangements KPMG fees will be increased for:

  • audit of financial statements for 2017 by PLN 60 thousand to PLN 140 thousand,
  • review of interim financial statements for 2018 by PLN 30 thousand to PLN 82 thousand.

The increase of the fees was due mainly to changes of legislation: implementation of new EU regulations applicable to public-interest entities, amendments of the Act on Auditors, Audit Firms, and Public Supervision which first apply to the audit of GPW’s financial statements for 2017, and amendments to the accounting standards. The amendments resulted in:

  • extended scope of auditor reporting with respect to audits of financial statements of public-interest entities;
  • additional communication between the auditor and the Audit Committee;
  • extended scope of audit and review due to additional disclosures in financial statements in areas related to key audit issues and additional disclosures in financial statements concerning the expected impact of the first application of new accounting standards (IFRS 15 Revenue from Contracts with Customers, IFRS 9 Financial Instruments, IFRS 16 Leases).

No new audit firm was selected in 2017. The GPW Group’s new audit firm to audit the financial statements for 2018 and subsequent years and to review the quarterly financial statements for Q1 2019 and subsequent periods will be selected in 2018.

Auditor’s fees for services provided to GPW Group (net amounts, PLN)

Service201720162015
Audit:140 00080 00080 000
annual separate and consolidated financial statements for the financial year ended 31 December   
verification of the calculation of GPW Management Board bonus indicators   
Review of interim financial statements:   
consolidated, for the period 01.01. – 31.03.15 00015 00019 000
consolidated, for the period 01.01 – 30.09.15 00015 00019 000
separate and consolidated, for the period 01.01. – 30.06.22 00022 00028 500
 

No recommendations were presented in 2017 to ensure accuracy of the financial reporting process.

With respect to control and monitoring of the independence of the audit firm which audits the issuer’s financial statements, KPMG submitted a written declaration concerning:

  • all relations (including non-audit services) impacting the independence of audit;
  • risks to continued independence caused by any relations; and
  • security measures mitigating the risks.

In 2017, KPMG Advisory Spółka z ograniczoną odpowiedzialnością sp.k., a member of the network of GPW’s auditor (“KPMG Advisory”), provided non-audit services to IRGiT in the review of the documentation of IRGiT’s application for authorisation as a CCP under EMIR. The agreement was signed before the effective date of the new regulations applicable to audit firms. The services were provided by 31 December 2017. According to the declaration of KPMG Advisory, the work did not impact accounting estimates. In the opinion of KPMG Advisory, there is no impact on its independence that should be disclosed.

The GPW Group’s auditor provided no prohibited services to GPW or its subsidiaries since 1 January 2016.