Mercedes 2004 Annual Report Download - page 90

The Audit Committee convened six times in the year 2004. Follo-
wing discussions with the external auditor, who also attended
those meetings, the Audit Committee consulted extensively on the
financial statements and the consolidated financial statements
for 2003 including the annual report on Form 20-F, the financial
statements for the first half of 2004, and the interim reports on
the first and the third quarters of 2004.
The Audit Committee regularly examined the suitability, qualifica-
tions and independence of the external auditor. In this context,
during the year, the Audit Committee monitored the compliance
with the principles governing the approval of services provided by
the external auditor. After receiving the approval of the Annual
Meeting, the Audit Committee engaged KPMG Deutsche Treuhand-
Gesellschaft Aktiengesellschaft Wirtschaftsprüfungsgesellschaft,
Berlin and Frankfurt am Main, to conduct the annual audit, nego-
tiated the audit fee of the external auditor and determined the
important audit issues for the year 2004.
The Audit Committee was also occupied with the company’s
risk-monitoring system and with the reports and programs of the
internal auditors.
The Audit Committee regularly dealt with complaints and criticism
with regard to accounting, the internal monitoring systems and
the annual audit that were received confidentially, and if so desired
anonymously, from DaimlerChrysler employees. In connection
with this work, the Audit Committee received information and
support from the Business Practices Office, which it also super-
vised. In addition, the Audit Committee regularly received reports
on the implementation of the provisions of the Sarbanes-Oxley
Act. In this context, the Audit Committee received reports, in
a special meeting at the end of September for example, but also
regularly in written form, on inquiries and investigations by the
Securities and Exchange Commission (SEC) and on the related
investigations taking place in the company, and supported the
cooperation with the SEC.
Furthermore, in 2004, the Audit Committee was occupied with
new accounting standards and their interpretation, as well as
with the status of the introduction within the company of the
International Financial Reporting Standards. In addition, the Audit
Committee conducted a specific self-evaluation of its activities.
In February 2005, in the presence of the external auditor, the Audit
Committee thoroughly examined the 2004 financial statements
and related documents, the proposal by the Board of Management
on the appropriation of earnings, and the audit report submitted
by the external auditor, and recommended that the Supervisory
Board approve those financial statements.
Stuttgart-Möhringen, February 2005
The Audit Committee
Bernhard Walter
Chairman
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Report of the Audit Committee