1. Verizon was created as the result of the merge of Bell Atlantic and GTE in 1998, but the joint venture was not approved until June 2000. The purpose of the merger was to provide long-distance and data services nationwide as part of a full package of other communications services. Two months before Verizon was formed, Bell Atlantic and Vodafone AirTouch Plc created a joint venture named Verizon Wireless, and GTE wireless operations became part of Verizon Wireless (Verizon, Corporate History). Verizon's Headquarters and Corporate offices are located at 140 West Street New York, NY 10007. (Form 10 K, Item 1, Business). Verizon Communications Inc. (VZ) provides broadband and other wireless and wireline communication services. Also, designs …show more content…
The charter contains the authority and purpose of the audit committee. It outlines the composition as well as the qualifications of the committee, which requires that it be comprised of at least three individuals who are solely independent directors (Verizon 1). The charter provides the number of times the committee will meet in a year. It outlines the duties and responsibilities of the committee members. 4. Verizon has both internal and external auditors. On one hand, the internal auditors include the five members in the committee. On the other hand, Ernst & Young LLP has been the company’s external auditors (Catalano 2). The auditor revealed that the company’s financial statements represented its financial condition fairly. a. Any company must pay for the auditing services provided by the external auditors. In the previous two years, Verizon has spent 46, 275 in 2012 and 44, 654 in 2013 for audit services (Ernst & Young LLP 50). b. The other types of costs were cost of sales, selling, administrative, depreciation, as well as amortization expense (Ernst & Young LLP