Siemens 2013 Annual Report Download - page 333

253 D. Consolidated Financial Statements 357 E. Additional Information
254 D.1 Consolidated Statements of Income
255 D.2 Consolidated Statements of Comprehensive Income
256 D.3 Consolidated Statements of Financial Position
257 D. Consolidated Statements of Cash Flows
258 D.5 Consolidated Statements of Changes in Equity
260 D.6 Notes to Consolidated Financial Statements
348 D.7 Supervisory Board and Managing Board
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AUDIT COMMITTEE PRE-APPROVAL POLICIES
In accordance with German law, Siemens’ independent auditor
is appointed by the Annual Shareholders’ Meeting based on a
recommendation of the Supervisory Board. The Audit Commit-
tee of the Supervisory Board prepares the board’s recommen-
dation on the election of the Company ’s independent auditor.
Subsequent to the auditor’s appointment, the Audit Commit-
tee engages the auditor and in its sole authority approves the
terms and scope of the audit and all audit engagement fees. In
addition, it monitors the auditor’s independence.
In order to ensure the integrity of independent audits,
Siemens’ Audit Committee has established a policy to approve
all audit and permissible audit-related services provided by our
independent auditor prior to the auditor’s engagement. As part
of this approval process, the Audit Committee adopted pre-ap-
proval policies and procedures pursuant to which the Audit
Committee annually pre-approves certain types of services to
be performed by Siemens’ independent auditor. Under the pol-
icies, the Company ’s independent auditor is not allowed to
perform any non-audit services which either () may impair
the auditor’s independence under applicable German regula-
tions or the rules and regulations of the International Ethics
Standards Board for Accountants (IESBA), the International
Federation of Accountants (IFAC), the U.S. Securities and Ex-
change Commission (SEC) or the Public Company Accounting
Oversight Board (PCAOB) or () which can be more effectively
or economically provided by another provider, even if permis-
sible under the relevant independence rules. Furthermore, the
Audit Committee has limited the sum total of all fees that may
be incurred during a fiscal year for non-audit services, includ-
ing audit-related services, tax services and other services, to
% of the audit fees agreed upon for the respective fiscal year.
The Audit Committee has generally pre-approved the perfor-
mance by EY of audit and audit-related services, including
among others the following:
AUDIT SERVICES
> Annual audit of Siemens’ Consolidated Financial Statements
and its internal control over financial reporting;
> Quarterly review of Siemens’ interim consolidated
financial statements;
> Audit and review services that are required by statute
or regulation, including statutory audits of financial
statements of Siemens AG and of its subsidiaries under
the rules of their respective countries;
> Opening balance sheet audits in connection with
acquisitions, including audits with regard to the allocation
of purchase prices.
AUDIT-RELATED SERVICES
> Voluntary local GAAP audits;
> Due diligence relating to actual or contemplated acquisitions
and carve-outs, including consultation in accounting
matters;
> Post-closing audits;
> Carve-out audits and attestation services in the context
of carve-outs;
> Certification services required by regulation, law or
contractual agreement;
> Consultation concerning financial accounting and
reporting standards based on the auditor’s knowledge
of Siemens- specific circumstances, including:
> Accounting advice relating to actual or contemplated
transactions or events;
> Advice on the introduction and review of new or
revised accounting guidelines and requirements;
> Training regarding accounting-related topics;
> Comfort letters;
> Employee benefit plan audits;
> ISAE  / SSAE  reports;
> Attestation services subject to regulatory requirements,
including regulatory advice;
> Attestation and audits in connection with the European
Community Directive on Waste Electrical and Electronic
Equipment;
> Attestation of compliance with provisions or calculations
required by agreements;
> Attest services in accordance with applicable standards,
other than audit services required by statute or other
regulation.