This excerpt taken from the PSBH DEF 14A filed Sep 19, 2005.
The Audit Committee (the Committee) is a committee of the Board of Directors (the Board) of PSB Holdings, Inc. (the Company). Its primary function is to assist the Board in monitoring:
· the integrity of the Companys financial statements;
· the qualifications and independence of the Companys independent auditor;
· the performance of the Companys internal audit function and independent auditor; and
· the Companys disclosure controls and system of internal controls over financial reporting.
The Committee should foster adherence to, and encourage continuous improvement of, the Companys policies, procedures and practices. The Committee should also provide an open avenue of communication among financial and senior management, the internal audit function, the independent auditor and the Board.
The Committee has the authority, to the extent it deems necessary or appropriate, to retain independent legal, accounting or other advisors. The Company shall provide for appropriate funding, as determined by the Committee, for payment of compensation to the independent auditor for the purpose of rendering or issuing an audit report and to any advisors employed by the Committee.
The Committee will report regularly to the Board. The Committee shall review and assess the adequacy of this Charter annually and recommend any proposed changes to the Board for approval.