The Audit Committee oversees the accounting and financing reporting processes of the Company and audits of the financial statements of the Company on behalf of the Board.
The Companys management has primary responsibility for the financial statements, for maintaining effective internal control over financial reporting, and for assessing the effectiveness of internal control over financial reporting.
The Audit Committee is governed by a charter. A copy of the charter can be accessed by clicking on Corporate governance Governance documents in the
Investors section of our website, www.nuance.com. The charter was last amended by the Board on April 30, 2019. The Audit Committee held six meetings during fiscal 2021. The Audit Committee is comprised solely of independent directors as defined
by the Nasdaq listing standards and Rule 10A-3 of the Exchange Act.
The meetings of the Audit Committee are designed to
facilitate and encourage communication among the Audit Committee, the Company and the Companys independent auditor. For fiscal 2021, the Audit Committee discussed with the Companys independent auditor the overall scope and plan for its
audit. The Audit Committee meets with the independent auditor, with and without management present, to discuss the results of its examinations, its evaluations of the Companys internal control over financial reporting, and the overall quality
of the Companys financial reporting.
The Audit Committee is responsible for the appointment, compensation and oversight of the Companys independent
auditor. The Audit Committee is also involved in the selection of independent auditors lead audit partner. The Audit Committee recognizes the importance of maintaining the independence of the Companys independent auditor, both in fact
and appearance. Each year, the Audit Committee evaluates the qualifications, performance and independence of the Companys independent auditor and determines whether to re-engage the current independent
auditor. In doing so, the Audit Committee considers the quality and efficiency of the services provided by the auditors, the auditors (global) capabilities and the auditors technical expertise and knowledge of the Companys
operations and industry. Based on this evaluation, the Audit Committee retained BDO USA, LLP as the Companys independent auditor for the fiscal year ended September 30, 2021. BDO USA, LLP has been the independent auditor for the Company
since its appointment as such for the nine months ended September 30, 2004. The members of the Audit Committee believe that, due to BDO USA, LLPs knowledge of the Company and of the industries in which the Company operates, it is in the
best interests of the Company and its shareholders to continue retention of BDO USA, LLP to serve as the Companys independent auditor for the fiscal year ending September 30, 2022. Although the Audit Committee has the sole authority to
appoint the independent auditors, the Audit Committee will continue to recommend that the Board ask the shareholders, at the annual meeting of shareholders, to ratify the appointment of the independent auditors.
The Audit Committee reviewed with management the consolidated financial statements in the Annual Report on Form 10-K for the
fiscal year ended September 30, 2021, 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 such financial statements.
Furthermore, the Audit Committee reviewed and discussed with the Companys management and BDO USA, LLP the evaluation of the Companys design and functioning of its internal controls over financial reporting. The Audit Committee reviewed
with BDO USA, LLP, who are responsible for expressing an opinion on the conformity of those audited financial statements with generally accepted accounting principles, as well as expressing an opinion on the effectiveness of internal control over
financial reporting, their judgments as to the quality, not just the acceptability, of the Companys accounting principles. In addition, the Audit Committee has discussed with BDO USA, LLP the matters required to be discussed by applicable
requirements of the Public Company Accounting Oversight Board. The Audit Committee has received the written disclosures and the letter from BDO USA, LLP required by applicable requirements of the Public Company Accounting Oversight Board regarding
BDO USA, LLPs communications with the Audit Committee concerning independence, and has discussed with BDO USA, LLP its independence. The Audit Committee also considered the compatibility of non-audit
services with BDO USA, LLPs independence.
In reliance on the reviews and discussions referred to above, the Audit Committee recommended to the Board, and the
Board has approved, that the audited consolidated financial statements be included in the Annual Report on Form 10-K for the year ended September 30, 2021 for filing with the SEC.
The Audit Committee
Robert Finocchio (Chair)
Daniel Brennan
Michal Katz
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2022 Proxy Statement
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