Audit Committee

The BoD appoints an Audit Committee with at least three members from among the independent directors. The Audit Committee assists the BoD in monitoring the integrity of the financial statements of the firm, compliance with legal and regulatory requirements, the qualification, independence and performance of UBS’s external auditors and their lead partners, and the integrity of the systems of internal controls for financial reporting.

All members of the Audit Committee have been determined by the BoD as being fully independent and financially literate. Peter Voser, the Audit Committee’s Chairman, as well as Rolf A. Meyer and Lawrence A. Weinbach have accounting or financial management expertise and are therefore considered “financial experts”, according to the rules established by the US Sarbanes- Oxley Act of 2002.

The Audit Committee does not itself perform audits, but supervises the work of the auditors. Its primary responsibility is thereby to monitor and review the organization and efficiency of internal control procedures and the financial reporting process. The Audit Committee plays an important role in ensuring the independence of the external auditors and therefore has to authorize all mandates assigned to them. It also has responsibility for the treatment of complaints regarding accounting and auditing matters (“whistleblowing”).

The Audit Committee met seven times in 2007, with representatives of the external auditors, the Group CFO, the Head Group Controlling & Accounting, Head Group Accounting Policies and the Head Group Internal Audit participating. The seven meetings included regular separate sessions with these representatives.