WESCO FINANCIAL CORPORATION AUDIT COMMITTEE CHARTER PURPOSE The purpose of the Audit Committee (“Committee”) is to assist the Board of Directors (“Board”) in fulfilling its oversight responsibilities by performing the following functions: • Overseeing the accounting and financial reporting processes of the Corporation and the audits of the financial statements of the Corporation. • Monitoring the integrity of the financial reporting process and systems of internal controls. • Monitoring the independence and performance of the independent auditors. • Providing an avenue of communication between the Board, management, internal audit and the independent auditors. ORGANIZATION AND MEETINGS The Board shall appoint and maintain a Committee of at least three members. Each member of the Committee shall meet the independence requirements of the American Stock Exchange and Rule 10A-3 under the Securities Exchange Act of 1934 (the “Exchange Act”). Each member must also be able to read and understand fundamental financial statements, including a balance sheet, income statement and cash flow statement. In addition, at least one member needs to be financially sophisticated, in that he or she (a) has past employment experience in finance or accounting, (b) has a requisite professional certification in accounting, (c) has any other comparable experience or background which results in the individual’s financial sophistication, including but not ...