This Audit Services Policy is designed to enhance the governance and oversight of external audits. Its primary purpose is to establish clear policies and procedures that facilitate effective communication between a company and its external auditors. By ensuring that all personnel are informed and engaged in the audit process, this tool promotes transparency and bolsters investor confidence through rigorous financial oversight. The structured approach outlined in this document aims to streamline audit activities, thereby enabling organizations to maintain compliance and uphold high standards of accountability.

This audit tool includes two samples that provide insights into best practices for managing external audit relationships. Sample 1 emphasizes the importance of cooperation between company personnel and external auditors, detailing the responsibilities of the audit committee and the board of directors in ensuring accurate financial reporting and effective internal controls. Sample 2 focuses on maintaining auditor independence while engaging non-audit services, outlining guidelines for acceptable services and the necessary oversight required to prevent conflicts of interest. Together, these samples offer a framework that can be tailored to meet the specific needs of any organization looking to enhance its audit processes.

Sample procedures include:

• Management will meet with auditors before year-end to agree on the timing of the audit fieldwork (including pre-year-end visits) and to review the audit plan.
• All personnel will accommodate the needs of external auditors so that their work can be performed quickly and effectively.
• The foreign entities will be responsible for paying the approved audit fees to local offices.
• Approved audit fees should be recorded as nonoperating expenses.