This excerpt taken from the AAPL DEF 14A filed Mar 13, 2006.
Appoint, compensate, and oversee the work of the independent auditors (including resolving disagreements between Management and the independent auditors regarding financial
reporting) for the purpose of preparing or issuing an audit report or related work.
Pre-approve audit and non-audit services to be provided to the Corporation by the independent auditors. In this regard, the Committee shall have the sole authority to approve the
hiring and firing of the independent auditors and all fees and terms of audit and non-audit engagements with the independent auditors, in each case as may be permissible and compatible with the auditors independence. The Committee shall also
review and approve disclosures with respect to non-audit services.
Review and provide guidance with respect to the external audit and the Corporations relationship with its independent auditors by (i) reviewing the independent
auditors proposed audit scope, approach and independence; (ii) obtaining on a periodic basis a statement from the independent auditors regarding relationships and services with the Corporation which may impact independence and presenting
this statement to the Board, and to the extent there are relationships, monitoring and investigating them; (iii) ensuring that the independent auditors submit to the Committee on an annual basis a written statement (consistent with Independence
Standards Board Standards No. 1) delineating all relationships and services that may impact the objectivity and independence of the independent auditors; and (iv) reviewing reports submitted to the Committee by the independent auditors in
accordance with the applicable SEC requirements.
Obtain and review an annual report from the independent auditors describing (i) the independent auditors internal quality control procedures and (ii) any material
issues raised by the recent internal quality control review, or peer review, of the independent auditors, or by any inquiry or investigation by governmental or professional authorities, within the preceding five years, respecting one or more
independent audits carried out by the independent auditors, and steps taken to deal with any such issues.
Review the experience and qualifications of the senior members of the independent auditor team.
Review and concur with the Corporations hiring of employees of the independent auditor who were engaged on the Corporations account.
Review the performance of the independent auditors on an annual basis.
Periodically discuss with the independent auditors, (i) their judgments about the quality, appropriateness, and acceptability of the Corporations accounting principles
and financial disclosure practices, as applied in its financial reporting, and (ii) the completeness and accuracy of the Corporations financial statements.
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