HR Block 2006 Annual Report Download - page 44

Based on the reviews and discussions referred to above, the AUDIT COMMITTEE
Audit Committee recommended to the Board of Directors of the Louis W. Smith, Chairman
Company that the Company’s audited financial statements be Jerry D. Choate
included in the Annual Report on Form 10-K for the fiscal year Henry F. Frigon
ended April 30, 2006, for filing with the Securities and Roger W. Hale
Exchange Commission. Len J. Lauer
David Baker Lewis
Rayford Wilkins, Jr.
AUDIT FEES –
The following table presents fees for professional services Other types of service are eligible for general pre-approval.
rendered by KPMG LLP for the audit of the Company’s annual Unless a type of service to be provided by the independent
financial statements for the years ended April 30, 2006 and 2005 auditor has received general pre-approval, it will require specific
and fees billed for other services rendered by KPMG LLP for such Audit Committee pre-approval. In addition, any proposed services
years (audit and audit-related fees for the year ended April 30, exceeding pre-approved cost levels will require specific
2005 have been adjusted to reflect additional fees incurred in pre-approval by the Audit Committee.
fiscal year 2005 with respect to restatements of prior General pre-approval granted under the Audit Committee’s
consolidated financial statements): pre-approval policy extends to the fiscal year next following the
date of pre-approval. The Audit Committee reviews and pre-
Fiscal Year 2006 2005 approves services that the independent auditor may provide
Audit fees $4,113,270 $4,673,978 without obtaining specific Audit Committee pre-approval on an
Audit-related fees 612,163 282,772 annual basis and revises the list of general pre-approved services
Tax fees —252,186 from time to time. In determining whether to pre-approve audit or
All other fees ——non-audit services (regardless of whether such approval is general
Total fees $4,725,433 $5,208,936 or specific pre-approval), the Audit Committee will consider
whether such services are consistent with the Securities and
Audit Fees consist of fees for professional services rendered
Exchange Commission’s rules on auditor independence. The Audit
for the audit of the Company’s financial statements and review of
Committee will also consider whether the independent auditor is
financial statements included in the Company’s quarterly reports
best positioned to provide the most effective and efficient service
and services normally provided by the independent auditor in
and whether the service might enhance the Company’s ability to
connection with statutory and regulatory filings or engagements.
manage or control risk or improve audit quality. All such factors
Audit-Related Fees are fees for assurance and related services
will be considered as a whole and no one factor should necessarily
that are reasonably related to the performance of the audit or
be determinative. The Audit Committee will also consider the
review of the Company’s financial statements or that are
relationship between fees for audit and non-audit services in
traditionally performed by the independent auditor.
deciding whether to pre-approve any such services. The Audit
Tax Fees consist of fees for the preparation of original and
Committee may determine for each fiscal year the appropriate
amended tax returns, claims for refunds and tax payment-
ratio between fees for Audit Services and fees for Audit-Related
planning services for tax compliance, tax planning, tax
Services, Tax Services and All Other Services.
consultation and tax advice.
The Audit Committee may delegate pre-approval authority to
All other fees are fees billed for professional services that were
one or more of its members. The member or members to whom
not the result of an audit or review.
such authority is delegated shall report any pre-approval
The Audit Committee has adopted policies and procedures for
decisions to the Audit Committee at its next scheduled meeting.
pre-approving audit and non-audit services performed by the
The Audit Committee has concluded that the provision of non-
independent auditor so that the provision of such services does
audit services provided to the Company by its independent
not impair the auditor’s independence. Under the Audit
accountant during the 2006 fiscal year was compatible with
Committee’s pre-approval policy, the terms and fees of the annual
maintaining the independent accountant’s independence.
audit engagement require specific Audit Committee approval.
H&R BLOCK 2006 Proxy Statement
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