Pizza Hut 2008 Annual Report Download - page 35

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(3) Tax fees for 2008 and 2007 consisted principally of fees for international tax compliance and tax audit
assistance.
What is the Company’s policy regarding the approval of audit and non-audit services?
The Audit Committee has implemented a policy for the pre-approval of all audit and permitted
non-audit services, including tax services, proposed to be provided to the Company by its independent
auditors. Under the policy, the Audit Committee may approve engagements on a case-by-case basis or
pre-approve engagements pursuant to the Audit Committee’s pre-approval policy. The Audit Committee
may delegate pre-approval authority to one of its independent members, and has currently delegated
pre-approval authority up to certain amounts to its Chairperson.
Pre-approvals for services have historically been granted at the March Audit Committee meeting each
year. In considering pre-approvals, the Audit Committee reviews a description of the scope of services
falling within pre-designated services and imposes specific budgetary guidelines. Pre-approvals of
designated services are generally effective for the succeeding 12 months. Any incremental audit or
permitted non-audit services which are expected to exceed the relevant budgetary guideline must be
pre-approved.
The Corporate Controller monitors services provided by the independent auditors and overall
compliance with the pre-approval policy. The Corporate Controller reports periodically to the Audit
Committee about the status of outstanding engagements, including actual services provided and associated
fees, and must promptly report any non-compliance with the pre-approval policy to the Chairperson of the
Audit Committee.
The complete policy is available on the Company’s Web site at www.yum.com/governance/media/
gov_auditpolicy.pdf and at Exhibit C.
Proxy Statement
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