According to the Board’s rules of procedure, the Audit Committee shall comprise at least three directors elected by the General Meeting. The members of the Audit Committee may not be employees of the Company. Most of the members shall be independent in relation to the Company and company management. At least one of the members, who is independent in relation to the Company and company management, shall also be independent in relation to the Company’s major shareholders and possess accounting or auditing skills. The Committee elects a chairman among its members, who may not be the Chairman of the Board. The duties of the Committee are stated in the Board’s rules of procedure. The Chairman of the Audit Committee is responsible for ensuring that the entire Board is kept regularly informed regarding the work of the Committee and, where necessary, shall submit matters to the Board for a decision. The main duties of the Audit Committee are to support the Board in the work of ensuring the quality of the financial reporting. The Committee regularly meets the Company’s auditors, evaluates the audit work and established guidelines as to which additional services the Company may procure from the external auditors. Such additional services up to a maximum of SEK 100,000 per engagement must be approved in advance by the Company’s CF0. Engagements in excess of SEK 100,000 must be approved in advance by the Chairman of the Audit Committee. All additional services must be reported regularly to the Audit Committee each quarter.
There is an established risk management process in the Company which is based on processes and flows in production. In this process, the Audit Committee reviews and takes into account the risk areas that have been identified (both commercial risks and risks of errors in the financial reporting). Based on the result of the internal and external risk assessment, the Committee regularly analyses the focus and scope of the audit with the Company’s external and internal auditors.
Each year, the Audit Committee adopts an internal audit plan which, among other things, is based on the risks that have arisen in the risk management process described above. The audit plan is discussed with the external auditors in order to enhance the efficiency and quality of the regular audit work. The Committee also analyses and elucidates significant accounting issues which affect the Group and assists the Nomination Committee in producing proposals as regards auditors and their fees.
Work in 2010
In 2010, the Audit Committee further developed and improved the presentation of the external financial reporting. The Audit Committee, together with the external auditors, reviewed and analyzed the risk analysis and audit plan prepared by the auditors as a basis for the statutory audit.
The Committee’s members were Anders G Carlberg (Chairman), Sverker Martin-Löf and Matti Sundberg. In 2010, the Audit Committee held four meetings at which minutes were taken.