Eli Lilly 2009 Annual Report Download - page 123

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impair the independence of the auditor, and (iii) management believes that the auditor is the best choice to
provide the services.
•Process. At the beginning of each audit year, management requests prior committee approval of the annual
audit, statutory audits, and quarterly reviews for the upcoming audit year as well as any other engagements
known at that time. Management will also present at that time an estimate of all fees for the upcoming
audit year. As specific engagements are identified thereafter, they are brought forward to the committee for
approval. To the extent approvals are required between regularly scheduled committee meetings,
preapproval authority is delegated to the committee chair.
For each engagement, management provides the committee with information about the services and fees,
sufficiently detailed to allow the committee to make an informed judgment about the nature and scope of the
services and the potential for the services to impair the independence of the auditor.
After the end of the audit year, management provides the committee with a summary of the actual fees
incurred for the completed audit year.
Independent Auditor Fees
The following table shows the fees incurred for services rendered on a worldwide basis by Ernst & Young LLP,
the company’s independent auditor, in 2009 and 2008. All such services were preapproved by the committee in
accordance with the preapproval policy.
2009
(millions) 2008
(millions)
Audit Fees
• Annual audit of consolidated and subsidiary financial statements, including Sarbanes-Oxley 404
attestation $8.0 $8.0
• Reviews of quarterly financial statements
• Other services normally provided by the auditor in connection with statutory and regulatory filings
Audit-Related Fees
• Assurance and related services reasonably related to the performance of the audit or reviews of the
financial statements $1.1 $0.8
—2009 and 2008: primarily related to employee benefit plan and other ancillary audits, and due diligence
services on potential acquisitions
Tax Fees
• 2009 and 2008: primarily related to consulting and compliance services $1.2 $1.7
All Other Fees
• 2009 and 2008: primarily related to compliance services outside the U.S. $0.1 $0.2
Total $10.4 $10.7
25
PROXY STATEMENT