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					Transparency Report 2008
 3     Foreword
 4     Thought leadership
 6     Statement from the head of assurance
 7     Services
 11 Grant Thornton International
 12 Governance and management
 13 Legal structure
                                              “My director at Grant
 14 Management structure
 16 Quality control systems                   Thornton has been my
 18 Independent oversight and external
    quality assurance review
                                              trusted adviser and confidante
 19 Risk management                           from the very early stages of
 21 Independence practices
 22 Professional skills and values
                                              the development. Knowing
 24 Financial information                     that we can rely on the advice
 25 Director remuneration
 26 Public interest entities
                                              we’ve received has enabled
 27 Contacts                                  us to focus on realising
                                              our vision.”
                                              Maha Sinnathamby
                                              Founder and chairman
                                              Springfield Land Corporation

“Grant Thornton has consistently given
me good advice and I would never make
a key decision now without running it
past them first.”
Colin Hughes
Snow Confectionery

2 Transparency Report 2008

It has been a year of momentous change for Grant         operations, values and how we uphold confidence
Thornton in Australia.                                   in our capabilities as public auditors.
    On 1 January 2008, our firm changed its                  This year we have seized a unique opportunity
corporate structure from an association of five          to change our business and we feel this report
state-based firms to a single national corporation       represents a benchmark for our national
called Grant Thornton Australia Limited                  corporation. Based on providing seamless
(GTAL). In an increasingly complex and regulated         quality service to our clients, adaptability and a
environment, we took the opportunity to create           commitment to speak out on key issues, we believe
a new, exciting and innovative entity which has          Grant Thornton Australia is uniquely placed to
delivered real, sustainable and growing benefits to      carve its own niche in the marketplace.
our people and clients.
    Following the change in structure, we continued
                                                         Robert Quant
to strengthen our position as a market leader by         Chief executive officer
merging with William Buck in Melbourne. This             Grant Thornton Australia

was in addition to our merger with Bentleys
MRI, Perth in October 2007 which bolstered our
presence in Western Australia. This has enabled us
to offer a truly integrated national capability from
the key capital cities. Similar strengthening by other   “We pride ourselves on client
member firms of Grant Thornton International has
taken place this year as part of a global strategy to    service excellence. We strive to
further enhance international capabilities.
    The past year has seen fee income in Australia
                                                         deliver a consistent level of client
rise by 40 per cent to $151m, which we see as the
first step towards our vision to be a $300m turnover
                                                         experience throughout all states
national business by 2011. Key to this target is
our commitment to client service excellence. Our
                                                         with a common focus on close
people are at the centre of this commitment with         relationships, communication,
the development of existing strengths as well as the
attainment of new areas of expertise a continued         and friendly accessible service.”
priority. Growth will also be key, both organic
and through acquisition, along with the continued
development of our national brand presence and           Robert Quant
overall pledge for integrity and clarity throughout      CEO
our organisation.                                        Grant Thornton, Australia
This transparency report for the year ending 30
June 2008 is the first report of its type produced by
Grant Thornton Australia. It has been produced on
a voluntary basis to provide a clear picture of our

                                                                                                              Transparency Report 2008 3
Thought leadership

Grant Thornton Australia is dedicated         Corporate governance survey – 2008         Surviving the credit crunch
to providing resources, research and          Our annual review of corporate             Our practical guide to the ‘credit crunch’
opinion pieces on the issues and              governance disclosure by the ASX 300       was produced with the privately held
challenges to business and those affected     is a valuable reference document for the   business in mind and was well received
by it. With our expertise, journalists        Australian market, highlighting trends     by clients and professional bodies alike.
regularly seek our opinions on matters        and reflecting the impact of new and       The guide explored a ten point readiness
of interest. Insolvency, tax, corporate       revised guidance.                          check designed to help businesses take
finance and succession options are                 In a period when businesses are       quick and decisive action to turn difficult
examples of the topics we have                under increasing pressure to perform,      market conditions to their advantage.
commented on recently.                        the report outlined the importance for     The guide examined key concepts
    Below are examples of thought             businesses to be managed effectively. It   such as cash flow management, cost
leadership reports produced by Grant          examined the good business practices of:   controlling, tax plans, investment plans
Thornton Australia this year, all of          1. Delivering a sustained report of good   and protecting personal wealth.
which are available on our website                 results.                      2. Demonstrating and implementing an       International Business Report
                                                   effective strategy.                   This year was the sixth year of our
Grant Thornton Aged Care Survey               3. Transparently disclosing the actions    participation in the Grant Thornton
With an ageing population, Australia               they take in order to create an       International Business Report (IBR).
faces a critical challenge to meet the need        environment of strong corporate       The global survey examines the thoughts
of its elderly citizens over the coming            governance to engender investor       and opinions of over 7,000 privately held
years. With the support of Professor               confidence.                           businesses in 34 countries, including
Warren Hogan, our survey examined             4. Implementing and disclosing             entrepreneurs, family businesses and
changing trends in the aged care industry          corporate social responsibility       non-listed entities which together
and evaluated the extent to which the              initiatives                           account for over 98 per cent of
current funding and policy models                                                        businesses worldwide.
promote service quality and choice for        While share market analysts frequently         Topics this year included examining
Australia’s elderly population.               focus on the first two elements, the       business confidence and economic
    Among the recommendations                 purpose of this report is to provide the   prospects, the continued emergence of
of the report was for the review of           reader with insight into what companies    corporate social responsibility, global
Australia’s aged care regulatory and          are doing regarding the third.             trends in recruitment and retention issues,
funding arrangements, with particular                                                    investing in global growth markets and
attention given to aspects of regulation                                                 trends in mergers and acquisitions.
which limit consumer choice and
investment. Initiatives introduced to
enhance consumer influence should not
undermine the accessibility, equity and
quality of aged care services.

4 Transparency Report 2008
Survey of Australia’s financial
reporting deadlines
Our survey on financial reporting
deadlines was conducted as part of
our commitment to speaking out on
the issues that matter to businesses.
In Australia, we have some of the
tightest financial reporting deadlines
in the world for both private and
publicly listed companies. We also have
predominance of 30 June year-ends due
to the tax and company legislation.
    The survey examined the effects of
this clustered reporting schedule and
examined options relating to potential
changes in legislation. Areas explored
1. allowing companies to change their
    year end dates more easily; and.
2. consideration of business size when
    setting reporting deadlines.

                                          Transparency Report 2008 5
Statement from the head of assurance

Audit quality is the cornerstone on         we have recently implemented along         the size, depth and capability to audit
which we’ve built our audit practice        with member firms around the world.        large, international listed companies.
over the last decade. Many see audit        Voyager builds on Grant Thornton           By continuing to build on the expertise
as a commodity. But beyond the              International’s previous Explorer and      gained through our current larger clients,
robustness of our assurance opinions,       auditCARE platforms, which we have         we will continue to make inroads in
our differentiation has been based on the   been using successfully for more than      this area and demonstrate to the market
service levels and high level of director   10 years in Australia. They will provide   that we are a very real and attractive
involvement we provide to our clients.      us with an even greater competitive        alternative to the Big 4.
     This director-led relationship         advantage against the mid-tier firms           We’ve made significant progress
model seeks to understand businesses        who do not have such tools and will be a   in achieving these goals in the last 12
and industries. Delivery is efficient       strong platform to further challenge the   months and will continue to grow
with paramount importance given to          Big 4 at the bigger end of town.           strongly over the coming years, built
deadlines and exceeding our clients’ high       With our recent mergers in             upon our commitment to audit quality,
expectations on service quality. Access     Melbourne and Perth we now have            client service and the best people using
to senior decision makers and technical     sizeable, strong audit practices in all    world class audit tools.
resources is timely, with communication     five major state capital cities. Our
clear and responsive.                       ASX listed audit clients number over
                                                                                       Matt Adam-Smith
     As national head of audit and          140 and growing. Our focus is now to       National head of audit and assurance services
assurance services, I am responsible for    dispel the myth that only the Big 4 have   Grant Thornton Australia

all aspects of leading this service line,
from delivering financial performance
and driving growth to attracting,
developing and retaining the best people.
     Naturally our delivery of audits
complies with the increasingly complex
professional standards. High quality,
well trained auditors using state of the
art audit methodology and tools are
fundamental to our success. Our high
standards are maintained through our
national training model which ensures
that staff in all offices obtain regular,
consistent training tailored to their
experience levels.
     We are fortunate to be able to
leverage Grant Thornton International’s
first class global audit methodology
(Horizon™) along with its second
generation software tool, Voyager, which

6 Transparency Report 2008

Audit and assurance                          Independence                                Reviews of financial reports
You might not have a choice whether          Conflicts of interest and independence      Provision of review services (less
your business carries out an audit or not,   are of paramount concern to audit           detailed and hence providing a lower
however, you can still choose who you        committees and auditors alike. We have      level of assurance than an audit) for half
appoint to conduct it.                       a web-based global independence and         year reports of ASX listed companies
                                             conflict check system to ensure we          under the Corporations Act 2001 and
Why choose Grant Thornton?                   are independent of all clients, prior to    other entities, as required.
At Grant Thornton we pride ourselves         undertaking work. Any conflicts of
on having a director-led service for all     interest that may arise are identified      Internal audits
our audit clients. We commit to being        immediately.                                Provision of an internal audit function,
responsive and spending the time                                                         either on a one-off or recurring basis, for
required to understand your business         Right sized replies                         organisations of all types.
and meet the agreed timeframes. You’ll       The need to gather, assess and act
find our directors are very hands on,        on information is as vital to Grant         Systems and controls reviews
with this type of work being their           Thornton as it is to our clients. We know   One-off reviews of an entity’s financial
passion and the reason they are part of      that, in most cases, our clients need       and operating systems and controls,
Grant Thornton.                              short, practical responses. Exhaustive,     providing an independent assessment of
    As we are members of Grant               time-intensive and costly reports are       the internal systems and controls. These
Thornton International, when we deal         usually not warranted in response to the    reviews assist in risk management and
with member firms in other countries         issues faced by our clients. We commit      corporate governance.
(perhaps where you have subsidiaries         to always providing a fee estimate before
or other operations) our audit files         we undertake any significant assignment     Agreed upon procedure reports
are easily transferred to minimise           outside of the scope the year-end audit.    Conducting procedures on specified
coordination costs. Through the                                                          financial information for a particular
international organisation of firms, we      Some of the Audit and Assurance             special purpose and then preparing a
deliver a truly seamless global audit in a   Services we provide include:                report based on these procedures.
timely and efficient way.
    Nationally, we invest in technical       Audits of financial reports                 Other types of audits
resources and training to ensure our         Provision of statutory audit services       There are many other types of audits
team are up to date with the latest          for clients requiring an audit under the    that we undertake such as:
accounting and auditing standard             Corporations Act 2001, or other relevant    •	 trust	accounts	(solicitors	and	real	
requirements. The Institute of Chartered     legislation. Our industry experience and        estate agents)
Accountants in Australia uses Grant          exposure to different entity structures     •	 grant	acquittal	statements	
Thornton for regular technical updates       is very broad. Within Australia our         •	 turnover	audits	for	shopping	centres.
to members. This means we are not            audit clients include 140 ASX listed
reactive when issues arise. Instead we       companies, some of the largest privately
identify potential problems that may be      owned businesses, right through to not-
encountered by our clients and deal with     for-profit entities.
them in a planned and considered way.

                                                                                                              Transparency Report 2008 7
Tax                                         Indirect tax                                Privately held business services
Continual changes in taxation law           •	 GST	advice	and	compliance                Privately held businesses are the bedrock
constantly challenge businesses large       •	 prudential	review	of	GST	returns	to	     of the Australian economy and are seen
and small, particularly those operating        ensure correct compliance                globally as the catalyst for economic
internationally. How your business          •	 stamp	duty	advice                        growth. It’s a progressive segment,
meets this challenge can have a             •	 land	tax	advice.                         with high levels of productivity and
significant affect on your bottom-line      •	 advice	on	payroll	tax	and	grouping	      innovation, essential to the health of the
and the more your business grows, the          provisions.                              global economy.
more complex tax requirements can                                                            Grant Thornton Australia has built
become.                                     Employment taxes                            its name on helping privately held
    Through legitimate planning, our        •	 prudential	review	of	fringe	benefits	    businesses achieve their ambitions. We
Grant Thornton tax team considers              tax returns to ensure inclusion of all   develop a close, long-term relationship
issues that arise within specific types        benefits                                 with our clients and work with them to
of tax, as well as the tax implications     •	 salary	packaging	advice                  understand their needs and aspirations
of a new project, or a change to the        •	 fringe	benefits	tax	calculations	and	    and then tailor our services to meet those
business. We work with you to develop          compliance indirect taxes                goals.
tax-planning strategies suitable for        •	 review	of	business	systems	and	               Our collaborative approach achieves
your specific business or individual           procedures to identify potential         maximum results both for the business
structure. Our common-sense approach           problem areas                            and, more importantly, the owner.
is designed to help you understand and      •	 PAYG	advice                              Clients deal directly with our directors
minimise the tax challenges you or your     •	 advice	on	the	superannuation	            who call upon their breadth of technical
business faces.                                guarantee charge                         expertise to benefit businesses through
                                            •	 prudential	review	of	payroll	            innovative solutions and their passion to
Our tax services include:                      records to ensure correct PAYG,          understand privately held businesses.
                                               superannuation and payroll tax.
Corporate tax services
•	 preparation/review	of	corporate	tax	
•	 preparation/review	of	IFRS	tax	
•	 transaction	tax	advice
•	 ATO	audit	assistance.

International tax
•	 tax-effective	international	business	
•	 advice	on	the	impact	of	double	tax	
•	 expatriate	planning
•	 staff	secondment	advice
•	 structuring	of	inbound	and	
   outbound investments
•	 transfer	pricing	reports	and	advice
•	 withholding	tax	requirements.

Corporate advisory services
•	 capital	raising	tax	advice
•	 advice	on	tax	and	structuring	matters	
   pertaining to private equity and
   venture capital transactions
•	 due	diligence	reviews
•	 preparation	of	reports	for	inclusion	
   in public documents.

8 Transparency Report 2008
Services offered to the privately held    Corporate finance                           Our capital market, M&A, transaction
business owner include:                   Are you looking at a merger, making         support services, advisory and valuation
•	 strategic	planning                     an acquisition, disposing of a business,    teams are represented by member firms
•	 structuring	advice	for	the	business	   undertaking a public share offering or      in Asia Pacific, the United Kingdom,
   and owner                              raising finance? Whatever your strategic    Europe and the Americas, positioning
•	 finance/banking	reviews                objectives, Grant Thornton can help         us ideally to consider both domestic and
•	 tax	planning                           you achieve them and increase your          international requirements of businesses.
•	 business	profit	improvement            shareholders’ wealth.                           Corporate finance teams in
•	 asset	protection	planning                  Our success is built on the             member firms worldwide work and
•	 specialist	business	owner	audits       importance we place on developing           train together, sharing industry and
•	 remuneration	planning                  deep, long-lasting relationships, both      technical expertise and a commitment to
•	 franchise	services                     with our clients and with third parties     excellence. With an active secondment
•	 owner	affairs	management               such as private equity houses, banks,       program between countries, we can field
•	 wealth	investment	management           other financial intermediaries, lawyers     experienced international and dedicated
•	 succession	planning                    and government bodies. The strength         service teams to suit your needs.
•	 mergers	and	acquisitions               of our partnerships and our multi-              Wherever the geographic location,
•	 estate	planning                        disciplined team allows us to provide       we apply the same insight, flexibility
•	 retirement	planning                    a rapid response, tailored to your          and relevant experience. We examine
•	 superannuation	advice                  particular circumstances.                   each transaction objectively and
•	 ongoing	mentoring                          If you are competing internationally,   independently from all angles and work
•	 specialist	tax	advice                  Grant Thornton offers particular            actively to involve all parties including
•	 accounting	and	compliance              expertise in complex transactions           purchaser, vendor, investor and
•	 business	valuation                     across diverse geographic jurisdictions,    management. This thorough approach
•	 business	health	checks.                particularly in the rapidly changing        ensures you receive the highest quality
                                          middle market.                              advice at all times and has gained us an
                                                                                      established track record for delivering
                                                                                      commercial and profitable solutions.

                                                                                      Corporate finance services include:

                                                                                      Pre deal services
                                                                                      •	   assurance
                                                                                      •	   analysis
                                                                                      •	   mergers	and	acquisitions
                                                                                      •	   valuations.

                                                                                      Strategy and planning
                                                                                      •	   structuring
                                                                                      •	   tax	planning
                                                                                      •	   project	plan
                                                                                      •	   research
                                                                                      •	   financial	modelling.

                                                                                      Pre bid analysis
                                                                                      •	   desk	top	review
                                                                                      •	   valuation	parameters/sensitivities
                                                                                      •	   gearing	scenarios
                                                                                      •	   fundraising.

                                                                                      Due diligence (DD)
                                                                                      •	 financial	DD
                                                                                      •	 taxation	DD
                                                                                      •	 vendor	DD
                                                                                      •	 information	technology	and	
                                                                                         systems review
                                                                                      •	 internal	controls.

9 Transparency Report 2008                                                                                 Transparency Report 2008 9
Completion                                   they can benefit from our strong sector      Outsourcing
•	   completion	accounts                     knowledge.                                   Workforce relations are a challenge.
•	   sale	and	purchase	agreement	advice          Outside of Australia, our multi-         Employee agreements, generational
•	   assistance	with	lending	and	funding     disciplined international capability         change,	varied/flexible	work	
•	   documentation.                          enables us to provide integrated cross-      entitlements, legislative changes and
                                             border recovery and restructuring            loss/lack	of	skilled	resources	all	create	
Post deal services                           solutions to multinational corporations.     complexity.
•	   purchase	price	allocation                   Recovery and reorganisation services         Grant Thornton Australia offers
•	   integration                             include:                                     solutions that assist clients improve how
•	   assurance	services                      •	 restructuring	and	turnaround              they manage and deploy employees
•	   tax	compliance                          •	 exit	strategy	services                    and improve support service delivery.
•	   M&A                                     •	 lender	support	services                   A comprehensive outsourced financial
•	   valuations.                             •	 insolvency	services                       and HR solution – fully supported
                                             •	 pre-lending	reviews.                      “back office” infrastructure with timely,
Recovery and reorganisation                                                               practical advice.
The normal lifecycle of every business       Other services                                   The team provides three key services:
has peaks and troughs. Just as the           Other advisory services provided by          •	 managing	workforce	deployment	
successes can exceed expectations,           Grant Thornton Australia include:                to ensure required talent is available
financial difficulties, if left unchecked,                                                    cost-effectively
can threaten the very survival of any        Business risk services                       •	 servicing	outsourcing	operations	
business.                                    Directors see the management                     from base transactional services (e.g.
    Grant Thornton works directly with       of business risk as not just about               payment compliance) to premium
companies, law firms and all the major       compliance, but as an opportunity. We            engagement services (e.g. wealth
Australian lenders to help anticipate and    provide enhanced risk management                 management)
prevent corporate insolvency. Where it       and compliance services along with IT        •	 providing	interim	HR/payroll	
is not possible to turn around a troubled    related risk management to align systems         management on a short or long term
business without formal insolvency           to your business and strategic objectives.       basis.
proceedings, we are qualified to act as          Above all, we are focused on
voluntary administrators, receivers,         improving business processes and             Litigation and forensic
liquidators or trustees in bankruptcy        ensuring good governance and control.        Our forensic accounting and litigation
as appropriate and often use these           We work with businesses to set a clear       support services helps businesses
procedures as a restructuring tool.          strategy for improvement by helping          quantify and recover economic losses.
    In every situation we use hard-won       tackle issues and take advantage of          We provide specialist investigative
experience and commercially proven           opportunities they present.                  financial, accounting and taxation
techniques to address the pertinent issues                                                services that assist to build a case
necessary to turn around a business –        Business transformation consulting           against a breach of contract or obtain a
from tax advice and compliance through       Our management consulting services           settlement on a wide range of disputes.
to refinancing, profit improvement and       help organisations successfully                  Our services include:
management counselling.                      implement complex initiatives.               •	 investigation	and	analysis	of	financial	
    We draw on our experience working           Consultants provide key insights              evidence
with both companies and lenders to           and experience to successfully execute       •	 development	of	computerised	
broker solutions designed to guide           on priority business initiatives including       applications to assist analysis and
debtors, creditors and other stakeholders    market, financial, technology and                presentation of financial evidence
towards a successful long-term future.       operational strategies.                      •	 communication	of	findings	(e.g.	
Grant Thornton’s recovery and                   Specialist offerings include:                 reports and exhibits) to assist in legal
reorganisation team is regarded as one       •	 market	sustainability                         proceedings, including testifying
of Australia’s leading practices, both          − developing and deploying                    in court as an expert witness and
domestically and abroad.                            strategic capabilities                    preparing visual aids to support trial
    Our proven ability to quickly            •	 service	integration                           evidence.
identify underlying performance issues          − enhancing the operation of
is supported by Grant Thornton’s                    businesses support functions.
Industry Intelligence Unit. This
produces regular industry-specific
research papers and articles for
publication and undertakes specialist
training for Grant Thornton’s clients so

10 Transparency Report 2008                                                                                   Transparency Report 2008 10
Grant Thornton International

Grant Thornton Australia Limited is a       Services are delivered independently by
member firm within Grant Thornton           the member and correspondent firms
International Ltd (Grant Thornton           within Grant Thornton International, a
International).                             non-practising, international umbrella
    Grant Thornton International is         entity organised as a private company
one of the world’s leading organisations    limited by guarantee incorporated in
of independently owned and managed          England and Wales. Grant Thornton
accounting and consulting firms.            International does not deliver services
These firms provide assurance, tax          in its own name or otherwise. Grant
                                                                                         •	 Member	firm	personnel	in	2008	totalled	
and specialist business advice to           Thornton International and the member
                                                                                            27,861 (21,822 in 2007) of which 2,539
privately-held businesses and public        firms are not a worldwide partnership.          were partners (2,448 in 2007).
interest entities. Clients of member        Each member and correspondent firm           •	 Grant	Thornton	member	firms	served	as	
and correspondent firms can access          within Grant Thornton International             primary auditors for approximately 1,500
the knowledge and experience of more        is a separate national firm. These firms        publicly listed companies in 2007.
than 2400 partners in over 100 countries    are not members of one international         •	 The	member	firms	of	Grant	Thornton	
                                                                                            International achieved combined global
and consistently receive a distinctive,     partnership or otherwise legal partners
                                                                                            revenues of US$4 billion to 30 September
high quality and personalised service       with each other (with the exception of          2008, a 14 percent increase on 2007.
wherever they choose to do business.        certain limited instances), nor is any       •	 Member	firms	of	Grant	Thornton	International	
Grant Thornton International strives        one firm responsible for the services or        experienced significant expansion in
to speak out on issues that matter to       activities of any other. Each firm governs      emerging economies via organic growth and
                                                                                            acquisition, for example, the member firm
business and which are in the wider         itself and handles its administrative
                                                                                            in Brazil experienced 65 per cent organic
public interest and to be a bold and        matters on a local basis. Although many         growth in 2007.
positive leader in its chosen markets and   of the member firms carry the Grant          •	 Mergers	in	Australia,	Hong	Kong,	Ireland	
within the global accounting profession.    Thornton name, either exclusively or            and	the	United	Kingdom	have	strengthened	
                                            in their national practice names, there         the global organisation further in 2007 and
                                            is no common ownership among the
                                                                                         •	 A	new	global	brand	identity	was	launched	
                                            firms (with the exception of certain
                                                                                            throughout the global organisation in 2008.
                                            limited instances) or by Grant Thornton
                                                                                         •	 Specialist	services,	such	as	Business	
                                            International.                                  Risk, Corporate Finance, Recovery &
                                                                                            Reorganisation, and Public Sector Advisory,
                                                                                            increased by 33 per cent in 2007.

                                                                                                               Transparency Report 2008 11
Governance and management

In a fast changing world, with increasing     Governance                                  Our independent chairman oversees the
regulation, Grant Thornton Australia          Grant Thornton in Australia operates        policy and strategy body to protect the
can be relied on to provide practical         directly through, or as subsidiaries of     firm’s values at a board level. In addition,
and independent advice centred on the         Grant Thornton Australia Limited, as an     we will appoint two external directors
highest professional ethics, principles       unlisted public company. Shareholders       to contribute business expertise and
and standards.                                of Grant Thornton Australia Limited         independent thinking.
                                              are the directors of Grant Thornton in          Three national committees stand
New structure                                 Australia.                                  aside from the board:
Our national structure allows us to offer         Our new ‘single entity’ corporate       •	 the	national	risk	management	
a full service of offerings to privately      structure enables us to reduce risks            advisory committee (NRMAC) is
held businesses and public interest           through stronger, more consistently             established to recognise and manage
entities alike. Something that smaller        applied systems and procedures.                 risk;
firms will struggle to offer as the cost of       The firm is governed by a board. The    •	 the	remuneration	and	equity	
compliance and regulation increases.          board composition is comprised of an            committee (REC) oversees fair and
    Although a unified national firm,         independent chairman, two independent           responsible remuneration practices;
our tailored approach to different states     directors, five state based executive           and
has been preserved through a continued        directors and a national CEO. This          •	 the	audit	committee	assist	the	board	
local office framework to preserve            composition enables the organisation to         to fulfil its responsibilities in relation
tailored responses and a local market         provide sufficient oversight, independent       to financial reporting, governance and
focus. This allows each office to pursue      thought leadership and working                  audit functions.
opportunities within its local market         knowledge of local office environments
whilst maximising the advantages of           to maintain our entrepreneurial business    One of our foundation principles is that
being a national entity.                      culture. Our structure enables local        we have a national service line leader
                                              offices to have sufficient authority so     approach to service delivery which
Leadership                                    they are able to respond to their local     provides us with competitive advantage
We pride ourselves on having a director-      market as well as having considerable       in our markets and protects our
led service for all clients. High on each     influence at a national level.              entrepreneurial spirit.
director’s agenda is a desire to maintain a
collaborative, values-based organisation
and to value and leverage individual
strengths and passions.
    Our people are encouraged to speak
out on a wide range of issues relating
to our clients and in the public interest.
We strive to lead in our chosen markets
and support necessary change in our
profession. Our directors contribute on
domestic and international issues with
strong collaboration with professional
and industrial associations.

12 Transparency Report 2008
Legal structure

Ownership                                  Regulatory body affiliation                 Grant Thornton Australia Ltd is
Grant Thornton Australia Ltd is a single   Many of the firm’s activities are           subject to reviews by certain regulatory
national corporation which is entirely     regulated by a number of independent        authorities including the ICAA, ASIC
owned by its shareholders, all of whom     bodies including:                           and APRA.
are employees of the firm.                 •	 institute	of	chartered	accountants	in	       Grant Thornton Australia Ltd is
    Within our structure we do not refer      Australia (ICAA)                         a member firm of Grant Thornton
to ourselves as partners, but instead we   •	 Australian	securities	and	investments	   International Ltd.
use the title of director, for example:       commission (ASIC)
director – taxation.                       •	 Company	auditors	board
                                           •	 tax	agents	board
                                           •	 Australian	prudential	regulatory	
                                              authority (APRA).

                                                                                                          Transparency Report 2008 13
Management structure


                                                           & Equity


                                 National                                                                                                                               Chief
                                  Service                                                                                                                             Operating
                               Line Leaders                                                                                                                            Officer

                            Privately     Specialist                                                                                                               Chief         Chief
                 Audit        Held        Advisory        Tax            NSW          QLD          SA         VIC         WA             Marketing               Financial   Information
                            Business      Services                                                                                                                Officer       Officer

                                                                         Office      Office      Office      Office      Office
                                                                        Managing    Managing    Managing    Managing    Managing
                                                                        Director    Director    Director    Director    Director
   Business         Business            Corporate       Recovery &
 Risk Services   Transformation          Finance       Reorganisation

                                                                        Directors   Directors   Directors   Directors   Directors

Figure 1: Grant Thornton Australia – reporting structure

The key roles and responsibilities for                           and growth. The board appoint, direct                         •	 One	representative	from	each	of	the	
management under the new structure are                           and hold the chief executive officer                             five states:
as follows:                                                      (CEO) accountable for ensuring                                   − New South Wales - Mark Bisset
                                                                 the business is operating in manner                              −	 Queensland	-	Rodger	Flynn
Board                                                            consistent with the vision and values.                           − South Australia - Steve Westaway
The principal role of the board is to                                The board consists of the following                          − Victoria - Ian Herman
lead the firm’s strategic priorities. The                        members:                                                         − Western Australia - Bill Stephen.
board is responsible for determining                             •	 independent	chairman	-	Professor	
national policy, strategy and governance                             Roger Collins
standards. It approves and oversees                              •	 CEO	–	Robert	Quant
delivery of the overall vision and                               •	 two	external	directors	to	be	
strategy for the firm’s profitable success                           appointed shortly.

14 Transparency Report 2008
The independent chairman has been           Office managing directors (OMDs)             Chief operating officer (COO)
appointed to provide direction and          As part of the national strategy, OMDs       This new role will provide leadership
support for the delivery of the firm’s      collaboratively lead, build and deliver      and management of the national support
vision and strategy. The role of the        growth and profitable performance in         operations. The senior executives
independent directors is to ensure all      each local market.                           in finance, information technology,
members of the board are focussed on        •	 New	South	Wales	-	Mark	Bisset             marketing and human resources will
the national shareholders’ best interests   •	 Queensland	-	Rodger	Flynn                 report to and work with the COO to
and to support executive directors          •	 South	Australia	-	Steve	Westaway          deliver the strategic outcomes required
during decision making processes.           •	 Victoria	-	Ian	Herman                     to meet the firm’s business and cultural
                                            •	 Western	Australia	-	Bill	Stephen.         objectives.
Remuneration and equity
committee (REC)                             National service line leaders (NSLLs)        National director marketing and
This committee’s role is to oversee and     Our NSLLs establish the vision and           business development
approve the annual remuneration awards      define the direction of each service line.   Leadership, development and
and equity allocation for directors.        Their goal is to leverage national service   management of the firm’s brand,
                                            line capability and market presence to       marketing and business development in
National risk management advisory           deliver the highest quality service to       line with national strategy.
committee (NRMAC)                           clients and to achieve growth and market
Approves and monitors the firm’s risk       leadership.                                  National director of human resources
management and compliance policies.         •	 Audit/assurance	-	Matt	Adam-Smith         Leadership, development, management
                                            •	 Privately	held	business	-	Tony	           and delivery of the firm’s people strategy
Audit committee                                 Markwell                                 to ensure we attract and retain the best
The audit committee assists the board       •	 Specialist	advisory	services	&	           people to meet our strategic goals.
to fulfil its corporate governance and          corporate finance - Scott Griffin
oversight responsibilities in relation to   •	 Recovery	and	re-organisation	-	Paul	      Chief information officer (CIO)
the firm’s financial reporting, internal        Billingham                               The CIO will work with the COO
control systems, risk management            •	 Taxation	-	Peter	Godber                   in developing and implementing
systems and the internal and external                                                    information technology initiatives,
audit functions. They objectively analyse   Executive officer (EO)                       technology platforms and systems to
firm financial data and ensure the board    The EO’s role is to support the CEO          deliver the optimum structure for the
receive the information they require in a   with the secretarial management and          operations of the firm.
timely manner.                              co-ordination of the reporting and
                                            information requirements across local
Chief executive officer (CEO) -             offices and service lines.
Robert Quant
The CEO has overall responsibility for:
•	 building	and	delivering	national	
   strategies for profitable growth and
   market position
•	 ensuring	the	management	of	the	firm	
   is in a manner consistent with the
   interests of our clients, people and
   ethical standards
•	 providing	leadership	for	the	values,	
   brand development and stewardship
   of the firm
•	 management	of	the	appointment,	
   performance and development of
•	 The	appointment	and	delegated	
   management of the senior executive
   team. Office managing directors
   (OMDs) report to the CEO as do
   our national service line leaders

                                                                                                            Transparency Report 2008 15
Quality	control	systems

Quality management and technical              Grant Thornton Australia operates             Client acceptance and continuance
excellence                                    a risk management framework with              All of Grant Thornton Australia’s
Our success centres on our                    management taking responsibility for          statutory audit clients are subject to
determination to be leaders in our            the quality service line delivery and         categorisation policies to make sure that
chosen fields. Stringent quality              ensuring that the appropriate processes       the appropriate procedures are applied.
management procedures, internal               are in place on an annual basis. Should       That categorisation is used to drive key
control systems and risk assessment           any areas of weakness be identified,          procedures including:
measures ensure that everyone at Grant        appropriate action is taken with the          •	 the	need	to	consult	and	acquire	
Thornton Australia adheres to the             improvement process monitored                     specific, external-to-the-office
standards that we and our clients have        throughout. This framework forms part             approval prior to the acceptance and
come to expect.                               of our internal audit review.                     continuation with particular new
    Nowhere is this more important                 We adopt a quality management                clients
than in our audit services where the          approach for auditing and financial           •	 the	requirement	of	specific	team	
quality of work is critical for our clients   reporting which is based on the                   members, with relevant experience,
and professional regulators. To uphold        following components:                             to perform the role of audit director
our standards, we have established a          •	 A	robust	and	rigorous	risk-based	              and ‘on-site’ roles
range of precautions which oversee our             audit approach – we allocate             •	 for	certain	categories	of	audit,	to	
audit procedure and the independence of            significant resource to ensure               recognise the need to appoint an
directors and staff.                               audit quality including widespread           appropriately experience review
    Every part of our business is                  consultation and on the job technical        director.
required to be governed by rigorous                training.
quality control systems, such as:             •	 Skills	and	personal	attributes	of	our	     Clients are only engaged if we are fully
•	 detailed	technical	manuals	–	                   directors and staff.                     satisfied that we have the required
    documenting procedures and                •	 Ethics	and	integrity	–	we	only	            capacity, skills and expertise to enable us
    standards expected of our work                 accept and act for businesses which      to offer the highest possible standards
•	 continual	training	of	directors	and	            we believe exhibit integrity and         of service and care to meet client
    staff including comprehensive                  ethical standards and for whom we        expectations. Acceptance of a client must
    inductions, yearly appraisals and              consider the risks of acting for to be   also not prejudice our independence,
    director peer reviews                          acceptable.                              objectivity or integrity.
•	 quality	control	measures	–	to	review	      •	 Independence	and	impartiality	–	               High profile appointments are
    and assess each assignment to uphold           throughout the organisation we           required to be pre-approved by senior
    required standards of quality                  understand that our reputation relies    management who are independent of the
•	 quality	assurance	processes	–	these	            on the quality of our work and           proposed client service team. A similar
    include retrospective reviews to               strength of the decisions we take.       process is compulsory on an annual basis
    enable feedback into the procedures       •	 Consultation	–	we	operate	a	culture	       or if there are any known changes in
    to continually review their                    where consultation is ingrained          circumstances.
    effectiveness.                                 in our approach and in relevant
                                                   circumstances, compulsory.

16 Transparency Report 2008
We maintain strong quality management        Clear and unambiguous audit                  the following standards issued by the
systems for all service lines to ensure      reporting                                    International Federation of Accountants
that each individual assignment is           Regular mandatory training is crucial        (IFAC) (as supplemented by additional
delivered to a consistently high level of    so directors and staff are aware of          Grant Thornton International
professional and technical excellence.       the latest issues in order to address        quality assurance policies) which are
In addition, we have dedicated central       them appropriately within the audit          consistent with Australian professional
support teams for all service areas who      approach. It also means we are able to       requirements:
offer practical support and advice to all    communicate with client’s board and          •	 International	Standard	on	Quality	
client-facing directors and staff.           audit committees on matters of relevance         Control	1:Quality	Control	for	Firms	
                                             to them in a clear, practical and positive       That Perform Audits and Reviews
Supporting audit delivery                    manner.                                          of Historical Financial Information,
Grant Thornton International develops            Close consultation is maintained             and Other Assurance and Related
resources that assist member firms in        throughout the audit process with audit          Services Engagements
delivering a strong and rigorous audit.      committees on a range of issues such         •	 International	Standard	on	Auditing	
They include:                                as initial scoping, through to crucial           220:Quality	Control	for	Audits	of	
•	 the	Voyager	audit	methodology,	with	 judgements. Our strategy and key issues               Historical Financial Information
    supporting state-of-the-art software,    memoranda also provide structure for         •	 International	Federation	of	
    manuals and policies, benchmarked        continued interaction with boards and            Accountants (IFAC) Code of Ethics
    against the International Standards      audit committees.                                for Professional Accountants.
    on Auditing, International Standards
    on	Quality	Control,	and	the	IFAC	        Grant Thornton International                 One of the pillars of the Grant Thornton
    Code of Ethics for Professional          audit review                                 International global strategy is to
    Accountants                              The Grant Thornton International             support member firms in their delivery
•	 protocols	that	enable	member	firms	       Audit Review (GTAR) programme is             of consistently high quality client service
    to consult with audit specialists in     part of the overall quality assurance        worldwide.	Quality	control	of	assurance	
    other member firms throughout the        monitoring procedures of Grant               services is overseen by the worldwide
    international organisation               Thornton International, and under            director – quality control. Member
•	 a	comprehensive	intranet	service	         this programme every member firm             firms are provided with guidance on
    that includes up to date information     that provides assurance services,            the design and implementation of their
    for member firms on relevant             whether to publicly- or privately-held       own quality control systems to support
    professional standards, a worldwide      businesses, is subject to review at least    their compliance with all applicable
    restricted-entity list, an International once every three years. Assessments          international and local standards. The
    Financial Reporting Standards            evaluate policies and procedures of the      global Grant Thornton International
    help desk, topical alerts, financial     member firm applicable to its assurance      Audit Review programme (GTAR)
    statement templates and examples.        practice, benchmark those policies and       reviews the conduct of audit work
                                             procedures against relevant policies         performed by each member firm.
In Australia, our national audit support     and procedures of the international
team provides high quality technical         organisation, review financial statements    Internal quality assurance reviews
support and guidance on all audit related and audit reports that have been                National audit reviews are carried out
issues.                                      issued, review engagement files, and         annually to assess the quality of the audit
                                             interview directors and staff on various     work across various areas of activity and
Audit team structures                        matters. The most recent review of           industry sectors. The reviews are risk
Strong emphasis is given to the              Grant Thornton Australia Limited             focused and review teams are selected
requirement to have the highest quality      was completed for the Sydney and             from outside the office under review.
of expertise within each audit team          Melbourne offices in November 2007,          Reviews cover each office location once
with substantial director and manager        and no significant issues were identified.   every three years and all new audit
involvement encouraged throughout the                                                     directors one year after appointment.
audit process. This is fundamental to our Grant Thornton International quality                In accordance with the Transparency
audit approach and a key differentiator      control procedures                           Report requirements, the above outlines
within the marketplace. We also dedicate In addition to our own quality control           the procedures that we have adopted
considerable resources to appraising         procedures – and in line with the Grant      to ensure that our assurance work is of
and developing all audit team members,       Thornton International founding              the highest quality. Similar processes are
including mentoring, professional and        member status of the Forum of Firms –        adopted across all client-facing segments
personal development courses.                Grant Thornton International member          of our business to ensure that our
                                             firms are required to abide by a system      reputation is protected and maintained.
                                             of quality control. It encompasses

                                                                                                              Transparency Report 2008 17
Independent oversight and external
quality assurance review

A number of the firm’s activities,
including audit, recovery and
reorganisation, financial planning work
and some aspects of our corporate
finance work are regulated by
independent bodies.
    The firm’s audit practice is
regulated by the Institute of Chartered
Accountants in Australia (ICAA); and
we are subject to inspection of our
audit files by the Australian Securities
and Investments Commission (ASIC).
Each of our offices was inspected by the
ICAA in 2007 and ASIC inspected our
Adelaide office in 2007 also. No major
issues were identified in these various
    The firm is registered with the Public
Company Accounting Oversight Board
    Serious consideration is given
by senior management, to any
recommendations made as a result of
internal reviews or by a regulator and
action taken to implement appropriate

18 Transparency Report 2008
Risk management

At Grant Thornton we consider risk          chaired by the local NRMAC member.          A formal risk issue and compliance
management to be an integral part of        The LRMAC’s are in turn supported by        breach reporting program is in place.
our business activity. A key objective of   risk and compliance representatives in      Reported issues are recorded in a central
our approach to risk management and         the business.                               database and tracked to completion.
compliance is to achieve our business            The national risk and compliance       This involves gathering monthly updates
objectives without surprises and to meet    manager is responsible for developing       from those responsible for completing
our compliance obligations. To this end     the risk and compliance strategy,           the actions, monitoring progress against
we have developed a comprehensive           frameworks and programs and                 pre-determined completion dates (set by
and integrated risk management and          implementing them in the business.          risk rating), reporting to management
compliance strategy which plays             The risk and compliance strategy, and       on individual and overall status of issues
a crucial role in our governance            its supporting elements, are based on       and evidencing completion. Where an
framework. This strategy was launched       Australia/New	Zealand	Standards	            issue is a compliance breach, protocols
in New South Wales in July 2008 and         4360 (Risk Management) and 3806             are utilised to manage all liaison with
is being rolled out nationally from         (Compliance).                               the regulator or professional body. If the
December 2008 onwards.                                                                  issue or breach concerns the assurance
                                            Frameworks                                  area, the national head of professional
Roles and responsibilities                  Our risk management framework               standards is a key stakeholder in the
The board has ultimate accountability       incorporates a fully integrated program     process.
for the firm’s risk management and          which is used to:                               Testing of controls is performed both
compliance outcomes. They are               •	 identify	risk	and	controls	and	          internally and externally. External audit
responsible for ensuring that the               allocate responsibilities for them      results from the GTAR, SASPR, ASIC,
entity has appropriate systems in           •	 measure	our	inherent	and	residual	       ICAA etc. are subject to the reporting
place to manage our risk exposures              risk and set risk tolerance levels      protocols.
and our compliance obligations. Their       •	 quantify	the	impact	and	likelihood	of	       Further,	the	“Internal	Quality	
commitment to a strong risk and                 occurrence                              Control Review Program” is
compliance culture is reflected in our      •	 assess	controls	for	effectiveness	of	    undertaken annually across the entire
risk management and compliance policy           design and performance                  business, including support services.
statements.                                 •	 monitor	programs	for	testing	            This program involves file reviews
     The National Risk Management               controls                                (operational service lines) as well as the
Advisory Committee (NRMAC),                 •	 raise	risk	issue	action	plans	and	track	 measuring of compliance with Grant
chaired by the national risk leader, is         them to completion                      Thornton International requirements,
responsible for monitoring our risk         •	 report	to	management	on	our	risk	        local legislation and other compliance
and compliance performance against              status in order to facilitate informed  obligations. Management Action
our strategy and advising directors on          decision making.                        Plans resulting from internal reviews
all elements of risk and compliance.                                                    are monitored via the risk issue and
This committee meets bi-monthly and         Risk assessments form the basis of          compliance breach reporting program.
is supported in the business by state       our risk management program and
based Local Risk Management Advisory        are currently being developed for all
Committees (LRMAC’s) which are              operational and support service lines.

                                                                                                           Transparency Report 2008 19
Key controls
Training – a range of technical and
compliance training modules are in
use across the business. Attendance is
monitored and the modules incorporate
assessment where appropriate.

Professional indemnity insurance – this
cover is in place through Allianz and is
supported by escalation and reporting
protocols and processes.

Policy – national and local policies
are used to set standards and guide
behaviour. Policies are subject to
a formal approvals process, are
periodically reviewed and include an
explanation of ramifications in the event
of breach.

Process and procedure – various
documented processes and procedures
are used to support the implementation
of policy in the business. Key amongst
these are the compliance manual
(incorporating	EQCM)	or	local	
equivalent, specialist advisory services
(SAS) manual (undergoing national
roll-out), audit manual and tax quality
control procedures and policies manual.

20 Transparency Report 2008
Independence practices

Maintaining objectivity and                  Grant Thornton International              Grant Thornton International has
independence of thought is vital to          In addition to our own independence       adopted an automated tracking system,
maintaining our reputation. We have          practices, Grant Thornton International   the Global Independence System (GIS).
a strong system of independence and          requires member firms to adopt            The GIS is a centralised database that
conflict checks, which is designed to        policies and procedures to uphold         stores information about the identity
identify potential conflicts of interest     the independence of other network         of publicly traded securities held by
at the earliest possible juncture, and       members. Member firms are required        member firms and relevant individuals
deal with them appropriately. Sources        to maintain a listing of companies        within each member firm. Directors and
of potential conflict include providing      considered ‘restricted’ as a result       client-facing managers in member firms
additional services to existing audit        of an audit relationship either with      are required to maintain a portfolio in
clients, acceptance of new clients and       the company or a related company.         GIS of those publicly traded securities in
investments by the firm and staff.           Those restricted companies that have      which they have a financial interest.
    For audit and similar engagements,       publicly traded securities are required       The GIS is designed to automatically
where independence is a matter of            to be posted no less than monthly         alert the individual professional and a
public interest, our procedures are          to a global restricted list through a     national compliance officer in the event
even more stringent. We ensure that          system maintained by Grant Thornton       that a security held becomes restricted,
directors carry out a check of whether       International. Professional personnel     and provides a mechanism to assist the
other services have been provided that       in member firms have access to this       individual and the compliance officer in
might impact on our independence             database via the Grant Thornton           determining whether the security may
before engaging with new audit clients.      International intranet.                   continue to be held, based upon the facts
We also require the engagement team                                                    and circumstances.
to confirm their independence on each
audit file. Furthermore, for all publicly
quoted clients, we disclose other services
provided to the audit committee at the
planning and conclusion stages.

                                                                                                          Transparency Report 2008 21
Professional skills and values

Our vision and values                       •	 ensure	deep	respect	for	people             Continued professional development
Grant Thornton Australia has adopted           − we build relationships based on          Grant Thornton Australia is committed
the Grant Thornton International global           confidence and trust. We treat          to make sure all our people are equipped
vision and values strategy. These values          people as individuals, promoting        with the necessary skills and expertise
and guiding behaviours are designed to            an inclusive environment that           to deliver the range of quality services
guide daily life within Grant Thornton            values the capabilities and             and technical expertise essential to our
under one global vision.                          contributions of each person.           clients. All directors and qualified staff
                                            •	 take	responsibility	for	all	our	actions.   are required to keep up to date with the
Our vision:                                    − we recognise our wider impact            latest professional standards, including
“Empowered people providing bold                  on our clients, people and society.     our own risk management, ethical and
leadership and distinctive client service         We also recognise that decisions        independence requirements.
worldwide.”                                       we make are investments in                  All staff operating in specialist service
                                                  a sustainable future. We act            lines or dedicated markets including
Our values:                                       with integrity, openness and            statutory audit must comply with the
•	 unite	through	global	collaboration             accountability to stay true to our      compulsory training requirements. On
   − we are committed to provide the              purpose and behave in a way that        an annual basis we actively monitor
       same quality experience for all            is consistent with our values.          that that any requirements are adhered
       our clients and people seamlessly                                                  to with each staff member required
       across national and international    All staff at Grant Thornton have the          to submit a continued professional
       borders                              responsibility to live by this vision         development record.
•	 demonstrate	leadership	in	all	we	do      and values and promise to make a                  On an internal basis, technical
   − we are committed to the                commitment to “be better tomorrow             resources and support is provided
       success of our clients, people,      than we are today”. Grant Thornton            through regular electronic updates,
       profession and stakeholders by       Australia will be running a full roll out     training workshops and seminars.
       demonstrating clear leadership at    of the Grant Thornton global vision
       all levels                           and values throughout late 2008 and           Client service
•	 promote	a	consistent	culture	of	         early 2009 with a series of workshops,        Grant Thornton Australia prides itself
   excellence                               seminars and communications. These are        on client service excellence. We want
   − we are distinguished for               designed to familiarise Grant Thornton        all our clients to experience a consistent
       innovation and solutions-based       Australia staff with the global vision        level of service no matter which state
       approaches created and delivered     and values, as well as to get buy in on       they are in. Our common focus is to
       by talented people with the          what the values mean on a more local          understand what businesses want, need
       passion to exceed expectation.       and personal level, to ensure we “live the    and value: close relationships, constant
•	 act	with	agility                         vales” as a firm on an everyday basis.        communication and a friendly, easily
   − we have the ability to adapt,                                                        accessible service from their business
       anticipate and respond quickly to                                                  advisers.
       meet complex client requirements
       along with changes within the
       marketplace and profession

22 Transparency Report 2008
Take Nippy’s Fruit Juices as an
example. The South Australian fresh
juice producers are jointly owned
and managed by brothers John and
Jeff Knispel. The brothers often have
different perspectives on the business
and this is where their relationship with
Grant Thornton can be most beneficial.
    “Grant Thornton’s long-term
involvement and working knowledge
of the business make their input
invaluable,” John says. “They often help
my brother and I resolve issues simply
because we value their opinion.”
    The company now boasts an
Australia-wide distribution network, an
Asian export market and a production
capacity of 25,000 tonnes of citrus fruit
each year.
    We believe in working alongside our
clients to understand their objectives and
help them reach their goals. It’s about
delivering on the basics and sustaining
a strong approach. Delivering when we
say we will and offering value at every
opportunity is fundamental to our
approach.                                     “Empowered
    Our client satisfaction research
programme examines the thoughts and
                                             people providing
experiences of our service delivery to
regularly monitor, review and tailor
                                             bold leadership and
our client service delivery. By tailoring
and reviewing the ‘Grant Thornton
                                             distinctive client
experience’ we are able to enhance every     service worldwide.”
element of our approach and ensure
we constantly offer value and deliver
services to help clients to meet their       Our vision
objectives.                                  Grant Thornton

                                                                   Transparency Report 2008 23
Financial information

 Grant Thornton Australia
 Number of offices                                             5 (Adelaide, Brisbane, Melbourne, Perth and Sydney)
 Head office                                                   Sydney
 Fees 2007-8 ($)                                               151,140,000
 Number of directors                                           106
 Revenue per director ($)                                      1,425,849
 Number of professional staff (full time equivalent)           689
 Revenue per professional staff ($)                            219,361
 Total staff (ex-directors, full time staff equivalent)        821

Fee income for financial              2007-2008      Service line fee income 2007-2008
year ending 30 June 2008              2006-2007
versus 30 June 2007

     160                                                  50


     100                                                  30



      0                                                    0
                                                                                     Audit (internal
                                                                                      and external)

                                                                                                       Corporate finance

                                                                    Privately held
                                                                business services

                                                                                                                                  Recovery and

24 Transparency Report 2008
Director remuneration

The Grant Thornton Australia                Long Term Incentives are nominated
remuneration and equity committee           by the CEO or OMDs based on
(REC) stands aside from the board           sustained performance against agreed
and oversees fair and responsible           criteria. Performance can be related to
remuneration practice for all directors.    contributions to both local and national
    Director’s remuneration includes        office.
a base salary which is determined by            Dividends are approved by the
the REC in consultation with external       board, based on profitability and cash
consultants on an annual basis reflecting   flow of the firm subject to agreed
market rate within each state.              retention levels.
    Short Term Incentives are calculated
based on the performances of the
director’s local office, national service
line and national firm. These levels
are proposed through consultation
with OMDs, NSLLs and the CEO
respectively. This excludes the CEO
which is proposed by the REC. The
Director’s performance is measured
applying a balanced scorecard

                                                                                       Transparency Report 2008 25
Public interest entities

Grant Thornton Australia Limited audits 140
public companies that are listed on the Australian
Stock Exchange. This represents just under eight
per cent of all listed companies. Beach Petroleum is
in	the	S&P/ASX	200	index,	and	13	companies	are	in	
the Top 500 by market capitalisation.

 Our 10 largest ASX                Top public interest entity
 listed audits by market           clients
 capitalisation (4/11/2008)
 Beach Petroleum Ltd               Southern	Health
 WHK	Group                         GM	Holden	Ltd
 Hunter	Hall	Global	Value          St	Vincent’s	Health	Melbourne
 Hunter	Hall	International         Royal	Children’s	Hospital
 Walter Diversified Services Ltd   DMS	Holdings	Pty	Ltd	ATF	
                                   DMS Glass Unit Trust
 Century Australia                 AI Limited
 Investments Ltd
 Talent2 International Ltd         Royal	Women’s	Hospital
 Reverse Corp Ltd                  Spotless
 Sirtex Medical Ltd                Telstra
 Ramelius Resources Ltd            Melbourne	Health

26 Transparency Report 2008

Australian offices and contact details

Adelaide                                 Melbourne                        Sydney
Level 1                                  Level 2                          Level 17
67 Greenhill Road                        215 Spring Street                383	Kent	Street
Wayville SA 5034                         Melbourne	VIC	3000               Sydney NSW 2000
T 08 8372 6666                           T 03 8663 6000                   T 02 8297 2400
F 08 8372 6677                           F 03 8663 6333                   F 02 9299 4445
E                       E   E

Brisbane                                 Perth
Ground Floor                             Level 1
Grant	Thornton	House                     10	Kings	Park	Road
King	George	Square                       West Perth WA 6005
102 Adelaide Street                      T 08 9480 2000
Brisbane QLD 4000                        F 08 9322 7787
T 07 3222 0200                           E
F 07 3222 0444

                                                                                                            Transparency Report 2008 27

Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member
firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its
services independently in Australia. Liability limited by a scheme approved under Professional Standards Legislation.