Nokia 2014 Annual Report Download - page 207

205NOKIA IN 2014
Financial statements
Auditor fees and services
Auditor fees and services
PricewaterhouseCoopers Oy has served as our independent auditor
for each of the scal years in the three-year period ended
December 31, 2014. The independent auditor is elected annually by
our shareholders at the Annual General Meeting for the scal year in
question. The Audit Committee of the Board of Directors makes a
proposal to the shareholders in respect of the appointment of the
auditor based upon its evaluation of the qualications and
independence of the auditor to be proposed for election or
re-election on an annual basis.
The following table presents fees by type paid to
PricewaterhouseCoopers for the years ended December 31:
EURm 2014 2013
Audit fees(1) 14.8 16.8
Audit-related fees(2) 0.6 10.0
Tax fees(3) 0.8 1.7
Other fees(4) 2.9 1.1
Total 19.1 29.6
(1) Audit fees consist of fees billed for the annual audit of the Group’s consolidated nancial
statements and the statutory nancial statements of the Group’s subsidiaries.
(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 Group’s nancial statements or that
are traditionally performed by the independent auditor, and include consultations concerning
nancial accounting and reporting standards; advice on tax accounting matters; advice and
assistance in connection with local statutory accounting requirements; due diligence related to
acquisitions or divestitures; nancial due diligence in connection with provision of funding to
customers, reports in relation to covenants in loan agreements; employee benet plan audits
and reviews; and audit procedures in connection with investigations and compliance programs.
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 in connection with statutory and regulatory lings and the review of documents led
with the SEC and other capital markets or local nancial reporting regulatory bodies.
(3) Tax fees include fees billed for: (i) corporate and indirect compliance including preparation and/or
review of tax returns, preparation, review and/or ling of various certicates and forms and
consultation regarding tax returns and assistance with revenue authority queries; (ii) transfer
pricing advice and assistance with tax clearances; (iii) customs duties reviews and advice;
(iv) consultations and tax audits (assistance with technical tax queries and tax audits and appeals
and advice on mergers, acquisitions and restructurings); (v) personal compliance (preparation of
individual tax returns and registrations for employees (non-executives), assistance with applying
visa, residency, work permits and tax status for expatriates); and (vi) consultation and planning
(advice on stock-based remuneration, local employer tax laws, social security laws, employment
laws and compensation programs and tax implications on short-term international transfers).
(4) Other fees include fees billed for company establishment, forensic accounting, data security,
investigations and reviews of licensing arrangements with customers, other consulting services
and occasional training or reference materials and services.
Audit Committee pre-approval policies
andprocedures
The Audit Committee of our 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 external auditor (the “Policy”).
Under the Policy, proposed services either: (i) may be pre-approved
by the Audit Committee in accordance with certain service categories
described in appendices to the Policy (“general pre-approval”);
or (ii) require the specic pre-approval of the Audit Committee
(“specic 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 signicant M&A projects), tax and other services
are subject to a specic pre-approval from the Audit Committee. All
service requests concerning generally pre-approved services will be
submitted to the Corporate Controller, who will determine whether the
services are within the services generally pre-approved. The Policy and
its appendices are subject to annual review by the Audit Committee.
The Audit Committee establishes budgeted fee levels annually for
each of the four categories of audit and non-audit services that are
pre-approved under the Policy, namely, audit, audit-related, tax and
other services. Requests or applications to provide services that
require specic approval by the Audit Committee are submitted to
the Audit Committee by both the external auditor and the Corporate
Controller. At each regular meeting of the Audit Committee, the
external auditor provides a report in order for the Audit Committee
to review the services that the auditor is providing, as well as the
status and cost of those services.