Alcoa has an independent and open relationship with the company's auditors, PricewaterhouseCoopers, and continues to strictly limit the non-audit work the firm performs. The company is committed to the highest standards in financial accountability.
In 2012, audit fees totaled $13.0 million, audit-related fees totaled $1 million, while fees related to tax services totaled $0.2 million, and all other fees were $0.2 million.
All Audit, Audit-Related, Tax and All Other Fees set forth above
were approved by the Audit Committee before services were
Audit Fees include the base audit fee, effects of foreign currency exchange rates on the base audit fee, scope adjustments to the base audit requirements, accounting and audit advisory services. The increase in audit fees from 2011 to 2012 is principally due to additional statutory audits of international subsidiaries and scope adjustments to the base audit.
Audit-Related Fees include due diligence services for acquisitions and divestitures, audits of employee benefit plans, agreed-upon or expanded audit procedures for accounting or regulatory requirements, review or verifi cation of reported sustainability information, and consultation with management as to accounting or disclosure treatment.
Tax Fees include U.S. federal, state and local tax support and international tax support.
Other Fees include services to review the Company’s actuarial calculations for its captive insurance company and fees related to regulatory matters.
Lead Audit Partner Rotation
Alcoa's governance standards require the rotation of the Board's lead audit partner at least every five years. A new lead partner was appointed in 2009.