Internal Control Procedures Essay
University of Phoenix
August 31, 2014
I chose Petsmart as my topic for my paper. Mainly because I have pets and that is where I purchase all my necessities for the animals that I truly treat like my kids. I thought it would be interesting to see what the internal procedures for this company are.
Petsmart has an audit committee which is selected by the Board of Directors, and is comprised of at least three board members who remain independent of the company and the management team. This is mainly because of the NASDAQ National Market rules that are in place and must be followed. By following these rules outlined, all committee members will meet the financial …show more content…
Some of the ongoing responsibilities of the committee are to review and reassess the adequacy of this Charter on an annual basis and review its own performance annually. Have sole authority for the retention, compensation, termination and oversight of the independent auditors (including resolution of disagreements between management and the independent auditors regarding financial reporting), which auditors shall report directly to the Committee. Have sole authority to approve the independent auditors’ fee arrangement and other terms of service. Approve in advance all auditing services to be provided by the independent auditors. Review the scope and general extent of the independent auditors’ audit examination prior to the annual audit. This review should also include the Vice President of Internal Audit’s evaluation of the performance of the independent auditors, including the degree of audit coordination and overall audit coverage. Establish policies and procedures, including the pre-approval process, for the engagement of the independent auditors and to provide permissible non-audit services. Pre-approval of non-audit services up to $50,000.00 may be delegated to one or more Committee members. Each pre-approval decision