The Audit Committee elects a Chairman from among its members. Members of the Audit Committee are elected from Board members who are not employees of the company. At least one of the members must be competent in accounting or auditing matters.
The duties of the Audit 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 about the Committee’s work and, where necessary, must submit matters to the Board for decision. The main task of the Audit Committee is to support the Board in its work to ensure the quality of financial reporting.
The Audit Committee oversees the company’s internal control and risk management regarding financial reporting. The Audit Committee also assists the company’s Nomination Committee with preparing proposals for a general meeting resolution on the election of auditors.
The Committee regularly meets the company’s auditors, evaluates the audit work and establishes guidelines as to which additional services the company may source from its external auditors. Such additional services, up to a maximum of SEK 100,000 per assignment, must be approved in advance by the company’s Chief Financial Officer. Assignments exceeding SEK 100,000 must be approved in advance by the chairman of the Audit Committee. All additional services must be reported to the Audit Committee each quarter.
The company has an established risk management process based on the company’s processes and flows. 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 financial reporting). Based on the outcome of the internal and external risk assessment, the Committee regularly analyzes 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 regular audit work. The head of Internal Audit presents conducted audits and any “whistleblowers” that have been reported to the Audit Committee. The Audit Committee also analyzes and elucidates significant accounting issues affecting the group.
The Audit Committee’s members were since the Annual General Meeting Petra Einarsson (Chairman), Marie Grönborg, Bengt Kjell and Annareetta Lumme-Timonen.