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Enhances governance standards

Document date:  Wed 24 Apr 2002
Published:  Wed 24 Apr 2002 11:38:31
Document No:  189514
Document part:  A
Market Flag:  N
Classification:  Other

AUSTRALIA AND NEW ZEALAND BANKING GROUP       2002-04-24  ASX-SIGNAL-G

HOMEX - Melbourne                                                     

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The ANZ Board today announced measures to enhance ANZ's corporate
governance procedures following a review of best practice by the ANZ
Audit Committee.

ANZ Chairman Mr Charles Goode said the new measures would further
strengthen ANZ's already high standard of corporate governance,
disclosure and transparency.

A number of measures will be introduced to enhance governance,
including plain English disclosure and expansion of discussion on
critical accounting policies in ANZ's published results, disclosure
of off-balance sheet structures and restrictions on the services that
may be provided by its auditor.

The review established clear definitions as to which services may or
may not be provided by ANZ's auditor (see attachment). These fall
into three categories:

* The auditing firm may provide audit and audit-related services
that, while outside the scope of the statutory audit, are consistent
with the role of auditor.

* The auditing firm should not provide services that are perceived to
be materially in conflict with the role of auditor.

* The auditing firm may be permitted to provide non-audit services
that are not perceived to be materially in conflict with the role of
auditor, subject to the approval of the ANZ Audit Committee.

ANZ Audit Committee Chairman, Mr John Dahlsen commented: "The Board
wishes to ensure ANZ has the highest standards of corporate
governance. This review demonstrates in a very tangible way the
importance we place on open and transparent disclosure, on
appropriate accounting policies, and ensuring the ANZ audit is
conducted without conflict of interest."

ANZ does not plan to put its audit out to tender at this time.

For media enquiries, contact:

Paul Edwards
HEAD OF GROUP MEDIA RELATIONS
Tel: 03-9273 6955 or 0409-655 550
Email: edwardp12@anz.com

ANZ POLICY ON AUDITING AND NON-AUDITING SERVICES

This policy defines the services that may or may not normally be
conducted by ANZ's external auditing firm. Implicit in this policy
are the principles that:

The auditing firm may provide audit and audit-related services that,
while outside the scope of the statutory audit, are consistent with
the role of auditor. These include audit related services, and
regulatory and prudential reviews requested by the Bank's regulators.
Examples are:

Financial audits
Audits of regulatory returns (eg APRA)
Reviews undertaken for regulatory purposes (eg APRA Targeted Review)
Other prudential audits or reviews
Completion audits
Audit for dealers' licenses

The auditing firm should not provide services that are perceived to
be materially in conflict with the role of auditor. These include
investigations and consulting advice and subcontracting of
operational activities normally undertaken by management, and where
the auditor may ultimately be required to express an opinion on its
own work. Examples are:

Investigating accountant work on new or increased lending transactions
Due diligence on potential acquisitions or investments
Advice on deal structuring and assistance in deal documentation
Tax planning and strategy
Designing or implementing new IT systems or financial controls
Advice on product structuring
Book-keeping
Valuations
Executive recruitment and appointments
Senior Management secondments

The auditing firm may be permitted to provide non-audit services that
are not perceived to be materially in conflict with the role of
auditor, subject to the approval of the ANZ Audit Committee. The ANZ
Audit Committee will specifically confirm activities in this
category. Examples are:

Receiver or liquidator and related investigation work
Junior secondments to ANZ
Internal audit activities capped at 20% of total internal audit work
Advice on appropriate accounting standards
Review of legislation and advice on its application to ANZ
Compilation of accounting records to assist with queries from revenue
 authorities
Tax compliance services
Review of the adequacy of controls and recommendations for 
 improvements.

An exception can be made to the above policy where the variation is
in the interests of the Group and arrangements are put in place to
preserve the integrity of the audit of the Group's accounts. Any such
exception requires the specific approval of the Board.