This excerpt taken from the DKS DEF 14A filed Apr 20, 2009.
Oversight and Review of Accounting Principles and Practices and Internal Controls.
15. The Audit Committee will, as it deems necessary, exercise oversight of, and review and discuss with Management, the Outside Auditors and the Internal Auditors:
A. significant financial reporting issues and judgments made in connection with the preparation of the Companys financial statements, the clarity of the financial disclosures made, changes in the Companys accounting principles or practices, the application of particular accounting principles and disclosure practices by Management to new transactions or events and the development, selection and disclosure of critical accounting estimates and analysis of alternative assumptions or estimates and the effect of such estimates on the Companys financial statements;
B. potential major changes in generally accepted accounting principles and the effect of those changes on the Companys financial statements;
C. changes in accounting principles, financial reporting policies and internal controls proposed to be implemented by the Company;
D. significant litigation, contingencies and claims against the Company and material accounting issues that require disclosure in the Companys financial statements;
E. information regarding any second opinions sought by Management from an independent auditor with respect to the accounting treatment of a particular event or transaction;
F. Managements compliance with the Companys processes, procedures and internal controls;
G. the adequacy and effectiveness of the Companys internal accounting and financial controls and the recommendations of Management, the Outside Auditors and Internal Auditors for the improvement of accounting practices and internal controls; and
H. disagreements between Management and the Outside Auditors or the Internal Auditors regarding the application of any accounting principles or any other matter and the Audit Committee shall resolve any such disagreements.