Computer Associates 2006 Annual Report Download - page 105

Download and view the complete annual report

Please find page 105 of the 2006 Computer Associates annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 172

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172

Audit Fees
Audit fees relate to audit work performed in connection with the audit of the Company’s financial statements for
fiscal year 2006 and fiscal year 2005 included in the Company’s annual reports on Form 10-K, the audit of the
effectiveness of the Company’s internal control over financial reporting for fiscal year 2006 and fiscal year 2005,
the reviews of the interim financial statements included in the Company’s quarterly reports on Form 10-Q for fiscal
year 2006 and fiscal year 2005, as well as work that generally only the independent auditor can reasonably be
expected to provide, including comfort letters to underwriters and lenders, statutory audits of foreign subsidiaries,
consent letters, discussions surrounding the proper application of financial accounting and/or reporting standards,
services related to the ongoing investigation by the United States Attorney’s Office for the Eastern District of New
York and the staff of the Northeast Regional Office of the SEC concerning the Company’s accounting practices and
the audit of the Company’s restated financial statements announced in calendar years 2005 and 2004.
Audit-Related Fees
Audit-related fees are for assurance and related services that are traditionally performed by the independent auditor,
including employee benefit plan audits and special procedures required to meet certain regulatory requirements.
The audit-related fees for fiscal year 2006 primarily reflect services in connection with benefit plan audits of
$236,000 and SEC filings of $105,000. In fiscal year 2005, the $230,000 of audit-related fees primarily reflected
services in connection with the issuance of a comfort letter related to the offering circular for the $500,000,000
4.75% Senior Notes due 2009 and the $500,000,000 5.625% Senior Notes due 2014.
Tax Fees
Tax fees reflect tax compliance and reporting services primarily associated with companies acquired during fiscal
year 2005 where KPMG LLP was the auditor of the acquired entities.
All Other Fees
All other fees represent fees for miscellaneous services other than those described above.
The Audit and Compliance Committee has concluded that the provision of the non-audit services listed above is
compatible with maintaining the independence of KPMG LLP.
Audit and Compliance Committee Pre-Approval Policies and Procedures
The Audit and Compliance Committee has adopted policies and procedures requiring Audit and Compliance
Committee pre-approval of the performance of all audit, audit-related and non-audit services (including tax
services) by our independent registered public accountants. The Audit and Compliance Committee may consult
with management in determining which services are to be performed, but may not delegate to management the
authority to make these determinations. The Committee has also delegated to its Chairman the authority to pre-
approve the performance of audit, audit-related and non-audit services by our independent registered public
accountants if such approval is necessary or desirable in between meetings, provided that the Chairman must advise
the Committee no later than its next scheduled meeting.
85