HENRY BROS. ELECTRONICS, INC. AND SUBSIDIARIES
AUDIT COMMITTEE REPORT
The Audit Committee is appointed by the Board to assist the Board in monitoring:
We meet with management periodically to consider the adequacy of the internal controls of Henry Bros. Electronics, Inc. and
the objectivity of its financial reporting. We discuss these matters with the independent auditors of Henry Bros. Electronics,
Inc. and with appropriate Company financial personnel.
We regularly meet privately with the independent auditors who have unrestricted access to the committee.
We select, evaluate and, where appropriate, replace the independent auditor, and review periodically their performance, fees and
independence from management.
Each of the Directors who serves on the committee is “independent” for purposes of the AMEX listing standards. That is, the
Board of Directors has determined that none of Messrs. Sands, Ritorto and Power has a relationship with Henry Bros.
Electronics, Inc. that may interfere with his independence from Henry Bros. Electronics, Inc. and its management.
The Board has adopted a written charter setting out the audit related functions the committee is to perform. The Board reviews
the charter on an ongoing basis to assure that the functions and duties of the Audit Committee will continue to conform to such
applicable SEC and stock exchange regulations as they may be amended or modified in the future. The charter is available to
shareholders on our website, www.hbe-inc.com.
Management has primary responsibility for the Company’s financial statements and the overall reporting process, including the
Company’s system of internal controls. The independent auditors audit the annual financial statements prepared by
management, express an opinion as to whether those financial statements fairly present the financial position, results of
operations and cash flows of the Company in conformity with accounting principles generally accepted in the United States and
discuss with us any