Allstate 2008 Annual Report Download - page 86

Appendix A
POLICY REGARDING PRE-APPROVAL OF INDEPENDENT REGISTERED PUBLIC ACCOUNTANT’S SERVICES
Purpose and Applicability
The Audit Committee recognizes the importance of maintaining the independent and objective stance of our
Independent Registered Public Accountant. We believe that maintaining independence, both in fact and in
appearance, is a shared responsibility involving management, the Audit Committee, and the Independent
Registered Public Accountant.
The Committee recognizes that the Independent Registered Public Accountant possess a unique knowledge
of the Corporation and its subsidiaries and can provide necessary and valuable services to the Corporation in
addition to the annual audit. The provision of these services is subject to three basic principles of auditor
independence: (i) auditors cannot function in the role of management, (ii) auditors cannot audit their own work;
and (iii) auditors cannot serve in an advocacy role for their client. Consequently, this policy sets forth guidelines
and procedures to be followed by this Committee when approving services to be provided by the Independent
Registered Public Accountant.
Policy Statement
Audit Services, Audit-Related Services, Tax Services, Other Services, and Prohibited Services are described in
the attached appendix. All services to be provided by the Independent Registered Public Accountant must be
approved by the Audit Committee or the Chair of the Audit Committee. Neither the Audit Committee nor the Chair
will approve the provision of any Prohibited Services by the Independent Registered Public Accountant.
Procedures
In connection with the approval by the Audit Committee of the engagement of the Independent Registered
Public Accountant to provide Audit Services for the upcoming fiscal year, the Independent Registered Public
Accountant will submit to the Committee for approval schedules detailing all of the specific proposed Audit,
Audit-Related, Tax, and Other Services, together with estimated fees for such services that are known as of that
date. Subsequent to the Audit Committee’s approval of audit engagement, Corporation management may submit
to the Committee or the Chair for approval schedules of additional specific proposed Audit, Audit-Related, Tax,
and Other Services that management recommends be provided by the Independent Registered Public Accountant
during the audit and professional engagement period. Regardless of when proposed to the Committee or the
Chair, each specific service will require approval by the Committee or the Chair before commencement of the
specified service. The Independent Registered Public Accountant will confirm to the Committee or the Chair that
each specific proposed service is permissible under applicable regulatory requirements.
Prior to approval of any specific Tax Service, the Independent Registered Public Accountant shall also provide
to the Committee or the Chair a written description of (i) the scope of the service and the related fee structure,
(ii) any side letter or other agreement between the Independent Registered Public Accountant and the
Corporation or any subsidiary regarding the service, and (iii) any compensation arrangement or other agreement
between the Independent Accountant and any person with respect to promoting, marketing, or recommending a
transaction covered by the service.
Delegation to Chair
In addition to the Audit Committee, the Chair of the Audit Committee has the authority to grant approvals of
services to be provided by the Independent Registered Public Accountant. The decisions of the Chair to approve
services shall be reported to the Audit Committee at each of its regularly scheduled meetings.
Review of Services
At each regularly scheduled Audit Committee meeting, the Audit Committee shall review a report containing
(i) a summary of any services approved by the Chair since the Committee’s last regularly scheduled meeting and
(ii) an updated projection for the current fiscal year, presented in a manner consistent with the proxy disclosure
requirements, of the estimated annual fees to be paid to the Independent Registered Public Accountant.
A-1
Proxy Statement