Internal control systems

The Executive Board is responsible for the company’s internal risk control and auditing system, and assessing its effectiveness. The system is designed to control risks related to business activities and the realisation of company objectives. It also monitors the efficiency and effectiveness of business processes and the consistency of the administrative processes.

The risk control framework is implemented throughout the Group. The responsibility for the control system is primarily allocated to the operating companies. Risk assessments are an integral part of the company’s annual planning and control cycle, which is discussed with the shareholder on an annual basis.

The risk control and auditing system for financial reporting is based on the central guidelines and procedures. Clear accounting rules are set out in the Strukton Reporting Manual and in a standard reporting structure.

External auditor

The external auditor annually completes auditing activities designed to issue an auditor’s statement with the annual financial statements. The external auditor is appointed by the shareholders. In consultation with the external auditor, both the shareholder and the Supervisory Board annually determine the activities to be added to the work required pursuant to the auditor’s statement. This may concern specific risks, business processes or sites where the Supervisory Board or the shareholder require more in-depth auditing. Recommendations from external auditing activities at any level are reported to the Supervisory Board and the Group Executive Board, and are followed up by the Group Executive Board.