Philips 2007 Annual Report Download - page 119

Philips Annual Report 2007 125
Audit fees consist of fees for the examination of both the
consolidated nancial statements (EUR 7.2 million) and
statutory nancial statements (EUR 4.7 million), as well
as the audit of internal controls over nancial reporting
(EUR 5.7 million). Audit-related fees consist
of fees in connection with audits of acquisitions and
divestments (EUR 2.3 million) and other audit-related
fees (EUR 1.6 million). Tax fees (EUR 1.2 million) mainly
relate to tax compliance and expatriate tax services.
Other fees comprise royalty audit fees (EUR 1.9 million)
and sustainability and other services (EUR 0.4 million).
In 2007, the Audit Committee further periodically
discussed the Company’s policy on business controls,
the GBP including the deployment thereof, and the
Company’s major areas of risk, including the internal
auditor’s reporting thereon. The Audit Committee was
informed on, discussed and monitored closely the
Company’s internal control certication processess,
in particular compliance with section 404 of the US
Sarbanes-Oxley Act and its requirements regarding
assessment, review and monitoring of internal controls.
It also discussed tax issues, litigation (including asbestos)
and related provisions, environmental exposures and
nancial exposures in the area of treasury, dividend,
pensions (including the situation at Philips Pension
Fund in The Netherlands), accounting treatment of share
repurchases, nancial holdings, the sale of shared service
centers, the investigations into possible anticompetitive
activities in the CRT industry and MedQuist, as well as
a nancial evaluation of the investments made in 2004.
Financial statements 2007
The nancial statements of Koninklijke Philips Electronics
N.V. for 2007, as presented by the Board of Management,
have been audited by KPMG Accountants N.V., independent
auditors. Their reports have been included in the chapter
IFRS nancial statements on page 239 and the chapter
Company nancial statements on page 245 of this Annual
Report. We have approved these nancial statements, and
all individual members of the Supervisory Board (together
with the members of the Board of Management) have
signed these documents.
We recommend to shareholders that they adopt the
2007 nancial statements. We likewise recommend to
shareholders that they adopt the proposal of the Board
of Management to pay a dividend of EUR 0.70 per
common share.
Finally, we would like to express our thanks to the
members of the Board of Management, the Group
Management Committee and all other employees
for their continued contribution during the year.
February 18, 2008
The Supervisory Board
98 Risk management 112 Our leadership 116 Report of the Supervisory Board 126 Financial Statements