Starwood 2007 Annual Report Download - page 56

AUDIT COMMITTEE REPORT
The information contained in this Audit Committee Report shall not be deemed to be “soliciting material” or
“filed” or “incorporated by reference” in future filings with the SEC, or subject to the liabilities of Section 18 of the
Exchange Act, except to the extent that the Company specifically incorporates it by reference into a document filed
under the Securities Act of 1933, as amended, or the Exchange Act.
The Audit Committee, which is comprised entirely of “independent” Directors, as determined by the Board in
accordance with the NYSE listing requirements and applicable federal securities laws, serves as an independent and
objective party to assist the Board in fulfilling its oversight responsibilities including, but not limited to,
(i) monitoring the quality and integrity of the Company’s financial statements, (ii) monitoring compliance with
legal and regulatory requirements, (iii) assessing the qualifications and independence of the independent registered
public accounting firm and (iv) establishing and monitoring the Company’s systems of internal controls regarding
finance, accounting and legal compliance. The Audit Committee operates under a written charter which meets the
requirements of applicable federal securities laws and the NYSE requirements.
In the first quarter of 2008, the Audit Committee reviewed and discussed the audited financial statements for
the year ended December 31, 2007 with management, the Company’s internal auditors and the independent
registered public accounting firm, Ernst & Young. The Audit Committee discussed with the independent registered
public accounting firm the matters required to be discussed by the Statement on Auditing Standards No. 61,
“Communication with Audit Committees,” as amended, and reviewed the results of the independent registered
public accounting firm’s examination of the financial statements.
The Audit Committee also received and reviewed the written disclosures and the letter from the independent
registered public accounting firm required by Independence Standard No. 1, “Independence Discussion with Audit
Committees,” as amended, and discussed with the registered public accounting firm their independence.
Based on the reviews and discussions referred to above, the Audit Committee recommended to the Board of
Directors that the financial statements referred to above be included in the Company’s Annual Report on Form 10-K
for the year ended December 31, 2007.
Audit Committee of the Board of Directors
Thomas O. Ryder (chairman)
Kneeland C. Youngblood
Lizanne Galbreath
Audit Fees
The aggregate amounts paid by the Company for the fiscal years ended December 31, 2007 and 2006 to the
Company’s principal accounting firm, Ernst & Young, are as follows (in millions):
2007 2006
Audit Fees(1) ........................................ $5.0 $4.5
Audit-Related Fees(2) .................................. $0.9 $1.8
Tax Fees(3) ......................................... $0.3 $0.2
All other fees ........................................ — —
Total .............................................. $6.2 $6.5
(1) Audit fees include the fees paid for the annual audit, the review of quarterly financial statements and assistance
with regulatory and statutory filings, the audit of the Company’s internal controls over financial reporting with
the objective of obtaining reasonable assurance about whether effective internal controls over financial
reporting were maintained in all material respects and for the attestation of management’s report on the
effectiveness of internal controls over financial reporting.
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