Alaska Airlines and Horizon Air 2010 Annual Report Download - page 50

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8. Annually review and reassess the
adequacy of the Committee’s charter and its
performance, and recommend any proposed
changes in the charter to the Board of
Directors for approval.
Audit Committee
Pursuant to its charter, the Audit
Committee’s responsibilities include the
following:
1. Matters pertaining to the independent
registered public accountants
• Appoint them and oversee their work.
• Review at least annually their statement
regarding their internal quality-control
procedures and their relationship with
the Company.
• Maintain a dialogue with respect to
their independence.
• Pre-approve all auditing and
non-auditing services they are to
perform.
• Review annual and quarterly financial
statements and filings made with the
SEC.
• Receive and review communications
required from the independent
registered public accountants under
applicable rules and standards.
• Establish clear hiring policies for
employees and former employees of the
independent registered public
accountants.
• Review audited financial statements
with management and the independent
registered public accountants.
• Receive and review required
communications from the independent
registered public accountants.
2. Matters pertaining to the internal
accountants
• Review the planned activities and
results of the internal auditors and any
changes in the internal audit charter.
3. Matters pertaining to filings with
government agencies
• Prepare the Audit Committee Report
required for the annual proxy statement.
4. Matters pertaining to controls
• Review major financial reporting risk
exposure and adequacy and
effectiveness of associated internal
controls.
• Review procedures with respect to
significant accounting policies and the
adequacy of financial controls.
• Discuss with management policies with
respect to risk assessment and risk
management, including the process by
which the Company undertakes risk
assessment and management.
• Discuss with management, as
appropriate, earnings releases and any
information provided to analysts and
ratings agencies.
• Develop, monitor and reassess from
time to time a corporate compliance
program, including a code of conduct
and ethics policy, decide on requested
changes to or waivers of such program
and code relating to officers and
directors, and establish procedures for
confidential treatment of complaints
concerning accounting, internal controls
or auditing matters.
• Obtain and review at least quarterly a
statement from the CEO, CFO and
disclosure committee members
disclosing any significant deficiencies in
internal controls and any fraud that
involves management or other
employees with significant roles in
internal controls.
5. Annually review and reassess the
adequacy of the Committee’s charter and
performance and recommend for Board
approval any proposed changes to the
charter.
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