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| The internal audit is an independent function that examines and evaluates internal control reports directly to the Board. In accordance with the Swedish Financial Supervisory Authority’s general recommendations on the control and management of financial companies, FFFS 2005:1, the Board establishes the function’s responsibilities, work tasks and procedures for reporting. |
The internal Audit’s Remit
The Institute of Internal Auditors’ international definition of an internal audit is that it is the Board’s independent, objective, assurance and advisory resource, designed to add value and improve the company’s operations. |
| The internal audit shall assist the company in achieving its goals by providing a systematic, structured approach to evaluating and improving the effectiveness of risk management, management and control, as well as management processes. |
| This means that the internal audit shall scrutinize the company’s internal control and management, and evaluate its existence, compliance and suitability for its purpose, and submit proposals for improvement. Moreover, the internal audit shall review whether the company fulfils the requirements set by laws and other important statutes, the Swedish Financial Supervisory Authority’s regulations and general recommendations, as well as the Articles of Association and the decisions of the Annual General Meeting. |
Internal Control and Management
Internal control and management refers to a process brought about by the company Board, management and other personnel to ensure with reasonable certainty that the company’s goals are achieved in one or more respects: |
- The operation’s effectiveness and suitability for its purpose.
- Reliability in financial and other reporting.
- Compliance with prevailing laws and regulations.
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| Control and management also refers to follow-up measures. |
Reporting
Ongoing Reporting
Audit work carried out is reported on an ongoing basis to the CEO and relevant operational/process manager. Reports shall contain forward-oriented proposals and take place as soon as possible to enable the company to take advantage of opportunities to improve and develop the operation. |
| Observations of particular importance shall be reported directly to the Board. |
Annual Audit Report
A written annual audit report is submitted to the Board detailing all examination tasks during the financial year, including important observations and summarizing assessments. The report also contains an assessment of the measures taken as a result of the year’s ongoing reporting. |
Other Reporting
Any special assignments outside of the actual internal audit brief shall be reported separately. |
| Page last updated 2011.10.13 |
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