This excerpt taken from the MWV DEF 14A filed Mar 26, 2007.
Review of the Companys Audited Financial Statements for the Year Ended December 31, 2006 and Internal Control over Financial Reporting as of December 31, 2006
Management is responsible for the financial reporting process, including the system of internal controls, and for the preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States of America. PricewaterhouseCoopers LLP, the companys independent registered public accounting firm for 2006, is responsible for auditing those financial statements and the companys internal control over financial reporting. The Audit Committee discussed with PricewaterhouseCoopers LLP the matters that are required to be discussed under Public Company Accounting Oversight Board (PCAOB) Standards, including those required to be discussed by SAS No. 61, Professional Standards, as adopted by the PCAOB in Rule 3200T. The Audit Committee also received the written disclosures and letter from PricewaterhouseCoopers LLP required by Independence Standards Board Standard No. 1 (Independence Discussion with Audit Committees), and has discussed with PricewaterhouseCoopers LLP the independence of PricewaterhouseCoopers LLP from MeadWestvaco and its management. The Audit Committee has reviewed and discussed the audited financial statements and managements assessment of the effectiveness of internal control over financial reporting with management.
The Audit Committee of MeadWestvaco reviewed and discussed the foregoing as reflected in the minutes of the Audit Committee, and on the basis of that review and those discussions, recommended to the Board of Directors that the audited financial statements of MeadWestvaco for the year ended December 31, 2006 be included in the Annual Report on Form 10-K for the year ended December 31, 2006 for filing by MeadWestvaco with the United States Securities and Exchange Commission.
The Audit Committee met six times in 2006. After each meeting, the Audit Committee met in executive sessions with the independent registered public accounting firm and the director of internal audit to review, among other things, staffing, the audit plan and reports on effectiveness of internal control over financial reporting.
The Audit Committee approved 100% of the audit, audit-related and tax services for the company performed by the independent auditor in 2006 and 2005. The companys Audit Committee Pre-Approval Policy is included in this Proxy Statement as Annex C.
MeadWestvaco incurred the following fees for services rendered by PricewaterhouseCoopers LLP for the years ended December 31, 2006 and 2005:
The Audit Committee concluded that the provision of non-audit services in 2006 and 2005 by PricewaterhouseCoopers LLP was compatible with their independence.