Pre-Engagement Resources

Mutual Selection of an Independent Verifier.

Both parties jointly select the neutral, qualified professional who independently determines whether agreed results have been achieved. Neither party has unilateral control over who verifies the outcome.

Why this matters

Independent verification only has integrity if the verifier is genuinely neutral. The mutual selection process ensures that neither Coaley Peak nor the client can appoint a professional who favours their position — and provides a binding fallback if agreement cannot be reached.

← Back to Pre-Engagement ResourcesFull Independent Verification framework →

Selection Process

The following process applies to every engagement. It is a contractual obligation, not a discretionary step.

1

Coaley Peak proposes a verifier

At the KPI agreement stage, Coaley Peak nominates a suitably qualified independent professional — typically a chartered accountant, practising solicitor, or registered sector expert — whose credentials and absence of conflicts are set out in writing.

2

Client reviews and may object

The client has 10 business days to review the proposed nomination. If the client has reasonable grounds to object — including any actual or perceived conflict of interest, insufficient qualification, or sector inexperience — they may reject the nomination in writing with reasons.

3

Client may nominate an alternative

The client may propose their own preferred verifier — for example, their existing auditors or a legal adviser with an established relationship. The proposed professional must meet the qualification and independence criteria set out below. Coaley Peak has 10 business days to accept or raise reasoned objection.

4

Agreement confirmed in writing

Once both parties have confirmed the verifier in writing, the appointment is recorded as an annex to the commercial agreement. The verifier is notified and confirms acceptance of the role and the applicable independence requirements.

5

Fallback: nomination by professional body

If the parties cannot agree on a verifier within 20 business days of the KPI agreement date, either party may request nomination by an appropriate professional body — typically the Institute of Chartered Accountants in England and Wales (ICAEW), the Law Society, or a body relevant to the KPI category. The nominated professional's appointment is binding on both parties.

Fallback mechanism

Where the ICAEW, Law Society, or relevant professional body is used as the fallback nomination body, their nominated professional's appointment is binding on both parties and may not be further challenged on grounds of preference alone. Either party retains the right to challenge on grounds of a disqualifying conflict of interest or failure to meet the qualification criteria set out below.

Qualification & Independence Criteria

Any proposed verifier — whether nominated by Coaley Peak or the client — must satisfy all of the following criteria. Failure to meet any criterion is grounds for rejection.

Professional registration

The verifier must hold a current, active registration with a recognised professional body relevant to the KPI category — for example, ICAEW, ACCA, CIMA, the Law Society, or an equivalent regulated body. Membership must be in good standing with no outstanding disciplinary proceedings.

Independence from both parties

The verifier must have no financial interest in the outcome of the verification. They must not be a current or former employee, director, or shareholder of either Coaley Peak or the client, and must not have provided services to either party within the preceding 24 months without disclosure and written agreement from both parties.

No conflict of interest

The verifier must declare any actual or potential conflicts of interest before accepting the appointment. If a conflict is declared, both parties must agree in writing to proceed before the appointment is confirmed.

Relevant sector experience

The verifier must have demonstrable experience in the KPI category being verified — for example, financial audit experience for cost-reduction KPIs, or legal and compliance expertise for risk-reduction KPIs. General professional qualification alone is not sufficient where specialist knowledge is material.

Professional indemnity insurance

The verifier must hold current professional indemnity insurance appropriate to the nature and value of the engagement. Confirmation of cover must be provided to both parties on request.

Confidentiality obligation

The verifier must agree in writing to maintain confidentiality of all client data, financial information, and commercially sensitive material accessed in the course of verification. This obligation survives the termination of the engagement.

The Verifier's Authority

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The independently appointed verifier's determination of whether agreed KPI targets have been achieved is binding on both parties, subject only to the dispute resolution provisions of the commercial agreement. Neither Coaley Peak nor the client may unilaterally override, discount, or appeal the verifier's findings on grounds of preference or commercial self-interest.

Where the verifier identifies a shortfall in agreed targets that is wholly or partly attributable to Coaley Peak's delivery failure, the relevant invoice amount is withheld and — on contracts started after 24 March 2026 — the guarantee provisions of the commercial agreement apply, up to a maximum of £10,000 in total per 12-month engagement period.

Where the verifier identifies a shortfall attributable to client-side factors — including restricted access, inaccurate baseline data, scope changes, or failure to cooperate — no invoice adjustment is made and the guarantee does not apply to that shortfall.

Legal note: The verifier acts as an independent expert, not as an arbitrator. Their determination is final as to the factual question of whether results were achieved. Separate dispute resolution provisions in the commercial agreement govern any contractual or legal disputes arising from that determination. Nothing on this page constitutes legal advice.

Can We Use Our Own Auditors?

Yes — subject to independence criteria

The client may nominate their existing auditors, legal advisers, or other trusted professionals as the independent verifier — provided the proposed professional meets all qualification and independence criteria. This includes confirmation that the professional has no financial or personal relationship with Coaley Peak.

Coaley Peak's right of objection

Coaley Peak retains the right to raise reasoned objection to a client-nominated verifier where a qualifying conflict of interest exists or where the nominee's professional registration or sector experience is not adequate for the KPI category. Objection must be raised in writing within 10 business days of nomination, with reasons.

Who pays?

Coaley Peak funds the cost of the independent verifier it proposes. Where the client nominates their own preferred professional, the additional cost differential — if any — above Coaley Peak's standard verification budget is the client's responsibility. This is agreed in writing before the appointment is confirmed.

Changing the verifier mid-engagement

A verifier may be replaced during the engagement only by written agreement of both parties, or where the verifier resigns, becomes disqualified, or is unable to continue. In such cases, the same mutual selection process applies to the replacement appointment.

Questions about the verifier selection process?

We are happy to share the Mutual KPI Assessment and Tracking Framework template and walk through how verifier selection would work for your specific engagement.

enquiries@coaleypeak.co.uk →Full verification framework →

Document reference: ISO_webpage_get-started_verifier-selection_v1

Last modified: 29 March 2026

Pre-Engagement Resources·Mutual Verifier Selection