This excerpt taken from the KRG DEF 14A filed Apr 15, 2005.
Relationship With Independent Accountants
Our consolidated financial statements for the year ended December 31, 2004 have been audited by Ernst & Young LLP, which served as our independent auditors for the last fiscal year and has been selected to serve as our independent auditors for the current fiscal year. Representatives of Ernst & Young LLP are expected to be present at the annual meeting, will have the opportunity to make a statement if they so desire and will be available to respond to appropriate questions.
The following summarizes the fees billed by Ernst & Young LLP for services performed for the year ended December 31, 2004:
The Audit Committee, which was formed in connection with our initial public offering, was not involved in approving the Audit Fees for services rendered in connection with our initial public offering.
All audit and permissible non-audit services provided by Ernst & Young LLP to us since we became a public company have been pre-approved by the Audit Committee, either pursuant to the Audit Committees Audit and Non-Audit Services Pre-Approval Policy or through a separate pre-approval by the Audit Committee.
Pre-Approval Policies and Procedures
The Audit Committees policy is to review and pre-approve either pursuant to the Audit Committees Audit and Non-Audit Services Pre-Approval Policy or through a separate pre-approval by the Audit Committee, any engagement of the Companys independent auditor to provide any permitted non-audit service to the Company. The Audit Committee has delegated authority to its chairman to pre-approve engagements for the performance of audit and non-audit services, for which the estimated cost for such services shall not exceed $100,000. The chairman must report all pre-approval decisions to the Audit Committee at its next scheduled meeting and provide a description of the terms of the engagement.