Nokia 2006 Annual Report Download - page 128

2006 2005
(EUR millions)
Audit Fees(1) ****************************************************************** 5.2 5.3
AuditRelated Fees(2) *********************************************************** 7.1 1.0
Tax Fees(3) ******************************************************************** 6.8 5.9
All Other Fees(4) *************************************************************** 0.4 0.1
Total ************************************************************************ 19.5 12.3
(1) Audit Fees consist of fees billed for the annual audit of the company’s consolidated financial
statements and the statutory financial statements of the company’s subsidiaries. They also include
fees billed for other audit services, which are those services that only the independent auditor
reasonably can provide, and include the provision of comfort letters and consents and the review
of documents filed with the SEC and other capital markets or local financial reporting regulatory
bodies. There were no unbilled audit fees at yearend 2006. The fees for 2005 include
EUR 1.4 million of accrued audit fees for the 2005 yearend audit that were not billed until 2006.
(2) AuditRelated Fees consist of fees billed for assurance and related services that are reasonably
related to the performance of the audit or review of the company’s financial statements or that
are traditionally performed by the independent auditor, and include consultations concerning
financial accounting and reporting standards; internal control matters and services in anticipation
of the company’s compliance with Section 404 of the SarbanesOxley Act of 2002; advice and
assistance in connection with local statutory accounting requirements; due diligence related to
acquisitions; employee benefit plan audits and reviews; and miscellaneous reports in connection
with grant applications. The fees for 2006 include EUR 1.5 million of accrued audit related fees
that were not billed until 2007. This amount includes EUR 0.3 million that Nokia will recover from
a third party. There were no unbilled auditrelated fees at yearend 2005.
(3) Tax Fees include fees billed for tax compliance services, including the preparation of original and
amended tax returns and claims for refund; tax consultations, such as assistance and
representation in connection with tax audits and appeals, tax advice related to mergers and
acquisitions, transfer pricing, and requests for rulings or technical advice from taxing authorities;
tax planning services; and expatriate tax compliance, consultation and planning services. The tax
fees for 2006 include EUR 0.4 million of accrued tax fees that were not billed until 2007. There
were no unbilled tax fees at yearend 2005.
(4) All Other Fees include fees billed for company establishment, forensic accounting and occasional
training services.
Audit Committee Preapproval Policies and Procedures
The Audit Committee of Nokia’s Board of Directors is responsible, among other matters, for the
oversight of the external auditor subject to the requirements of Finnish law. The Audit Committee
has adopted a policy regarding preapproval of audit and permissible nonaudit services provided by
our independent auditors (the ‘‘Policy’’).
Under the Policy, proposed services either (i) may be preapproved by the Audit Committee without
consideration of specific casebycase services (‘‘general preapproval’’); or (ii) require the specific
preapproval of the Audit Committee (‘‘specific preapproval’’). The Audit Committee may delegate
either type of preapproval authority to one or more of its members. The appendices to the Policy
set out the audit, auditrelated, tax and other services that have received the general preapproval of
the Audit Committee. All other audit, auditrelated (including services related to internal controls and
significant M&A projects), tax and other services must receive a specific preapproval from the Audit
Committee. The Policy and its appendices are subject to annual review by the Audit Committee.
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