The Audit Committee monitors Kraft Foods' financial reporting processes and systems of internal control over financial reporting, the independence and the performance of the independent auditors and the performance of the internal auditors.

The Audit Committee consists entirely of independent directors. The board has determined that all Audit Committee members are independent under the listing standards of the New York Stock Exchange and Rule 10A-3 of the Securities Exchange Act of 1934, as amended. Its responsibilities are set forth in the Audit Committee Charter (PDF). The Audit Committee met 13 times in 2009.

All members of the Audit Committee are financially literate and the Committee Chair, Fredric G. Reynolds is an“audit committee financial expert” within the meaning of the regulations of the Securities and Exchange Commission. No member of the Audit Committee received any payments in 2009 from Kraft Foods or its subsidiaries other than compensation received as a director of Kraft Foods.