This excerpt taken from the PRVT DEF 14A filed Nov 15, 2005.
In carrying out its responsibilities, the Audit Committee shall:
Review the external auditors compensation, the proposed terms of its engagement, and its independence;
Serve as an additional communication between the external auditor and this Board of Directors and between the senior internal auditing executive, if any, and this Board of
Review results of each external audit, including any qualifications in the external auditors opinion, any related reported condition letter, managements responses to
recommendations made by the external auditor in connection with the audit, reports submitted to the Audit Committee by the internal auditing department that are material to the Corporation as a whole, and managements responses to those
Review the Corporations annual financial statements and any significant disputes between management and the external auditor that arose in connection with the preparation of
those financial statements;
Consider, in consultation with the external auditor and the senior internal auditing executive, if any, the adequacy of the Corporations internal financial controls; it being
understood that, among other things, such controls must be designed to provide reasonable assurance that the Corporations publicly reported financial statements are presented fairly in conformity with generally accepted accounting principles;
Consider major changes and other major questions of choice regarding the appropriate auditing and accounting principles and practices to be followed when preparing the
Corporations financial statements;
Meet (a) periodically with the Chief Executive Officer and separately with the Chief Financial Officer to review the financial affairs of the Corporation; (b) at its
discretion with the external auditor for the Corporation.
Review related party transactions for potential conflicts of interest in accordance with the listing requirements of the Nasdaq National Market; and
Perform oversight functions as requested by the Board of Directors.