Pier 1 2009 Annual Report Download - page 132

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(2) Includes fees for services related to tax compliance, tax advice and tax planning.
(3) Includes fees for subscription to online research tool.
Pre-approval of Nonaudit Fees
The audit committee has adopted a policy that requires advance approval of all audit, audit
related, tax and other services performed by the independent registered public accounting firm. The
policy provides for pre-approval by the audit committee of specifically defined audit, audit related and
tax services. Unless the specific service has been previously pre-approved with respect to a fiscal year,
the audit committee must approve the permitted service before the independent registered public
accounting firm is engaged to perform it. The audit committee has delegated to the chairman of the
audit committee authority to approve permitted services up to $50,000 per engagement provided that
the chairman reports any pre-approval decisions to the committee at its next scheduled meeting.
AUDIT COMMITTEE REPORT
Each member of the audit committee is an independent director, pursuant to the independence
requirements of the SEC and NYSE. In accordance with the committee’s written charter, the
committee assists the board of directors in overseeing the quality and integrity of Pier 1 Imports’
accounting, auditing and financial reporting practices. In performing its oversight function, the
committee reviewed and discussed Pier 1 Imports’ audited consolidated financial statements as of and
for the fiscal year ended February 28, 2009 with management and Pier 1 Imports’ independent
registered public accounting firm, including a discussion of the quality, not just the acceptability, of the
accounting principles, the reasonableness of significant judgments, and the clarity of disclosures in the
financial statements. The committee also discussed with Pier 1 Imports’ independent registered public
accounting firm all matters required by generally accepted auditing standards, including those described
in Statement on Auditing Standards No. 61, ‘‘Communication with Audit Committees’’ and, with and
without management present, discussed and reviewed the results of the independent registered public
accounting firm’s examination of the consolidated financial statements.
The committee obtained from the independent registered public accounting firm a formal written
statement describing all relationships between the firm and Pier 1 Imports that might affect the firm’s
independence consistent with applicable requirements of the Public Company Accounting Oversight
Board regarding the independent accountant’s communications with the audit committee concerning
independence. The committee also discussed with the registered public accounting firm any
relationships that may have an impact on their objectivity and independence and satisfied ourselves that
the registered public accounting firm is independent. The committee also considered whether the
provision of non-audit services by Ernst & Young LLP, Pier 1 Imports’ independent registered public
accounting firm for fiscal 2009, to Pier 1 Imports is compatible with maintaining Ernst & Young LLP’s
independence.
Based on the above-described review and discussions with management and the independent
registered public accounting firm, the committee recommended to the board of directors that Pier 1
Imports’ audited consolidated financial statements be included in Pier 1 Imports’ Annual Report on
Form 10-K for the fiscal year ended February 28, 2009, for filing with the SEC.
AUDIT COMMITTEE
Terry E. London, Chairman
Michael R. Ferrari
Cece Smith
34