Internal controls
The Group’s businesses and treasury management are controlled by means of efficient planning and supervisory systems, unit-specific reporting systems and internal audits. Most of the Company’s management and operating systems are documented and/or certificated. The functionality of the systems as well as their observance are monitored not only internally but also by external bodies such as certification organisations.
Internal auditing
The Company’s internal audit function assists the Board of Directors to discharge its supervisory responsibility. The Board of Directors approves the internal auditing procedures and the annual audit plan. The internal audit function is subordinate to the Board of Directors and operates under the supervision of the Managing Director. The internal audit function reports its audit findings to the Chairman of the Board of Directors, the Chairman of the Audit Committee and the Managing Director. The internal audit function reports biannually to the Board of Directors’ Audit Committee on its audit findings, plan and activities.
The primary task of the internal audit function is to examine and assess Lemminkäinen Group’s risk management as well as the efficiency and functionality of the units’ internal controls. The internal audit function checks to ensure that financial information is correct and adequate, that operating policies, regulations and guidelines are followed, that reporting and quality systems are observed, that assets are protected from losses, and that resources are used economically and efficiently. The internal audit function also acts as an expert in development projects associated with its field, and carries out special investigations at the behest of the Board of Directors, the Audit Committee or senior management.
Updated 7.3.2008