This excerpt taken from the QADI DEF 14A filed Jun 6, 2005.
Independent Auditors
1.
At
least annually, obtain and review a report by the independent auditor describing: the firm's internal quality control procedures; any material issues raised by the most recent
internal quality control review, or peer review, of the firm, or by any inquiry or investigation by governmental or professional authorities, within the preceding five years, respecting one or more
independent audits carried out by the firm, and any steps taken to deal with any such issues; and (to assess the auditor's independence) all relationships between the independent auditor and the
company. Evaluate the qualifications, performance and independence of the independent auditor, including considering whether the auditor's quality controls are adequate and the provision of permitted
non-audit services is compatible with maintaining the auditor's independence, and taking into account the opinions of management and internal auditors. The Audit Committee shall present
its conclusions with respect to the independent auditor to the Board.
2.
Ensure
the rotation of the lead (or coordinating) audit partner having primary responsibility for the audit and the audit partner responsible for reviewing the audit as required by
law.
3.
Meet
with the independent auditor prior to the audit to discuss the planning and staffing of the audit.
4.
Set
clear policies for the company's hiring of employees or former employees of the independent auditor.
5.
Review
with the independent auditor any audit problems or difficulties and management's response.
6.
Approve
the fees and other significant compensation to be paid to the independent auditors.
