Saab 2011 Annual Report Download - page 143

PricewaterhouseCoopers AB is a member of PwC’s global network
with operations in around  countries. PwC has competence and
experience in areas important to Saab: auditing of large and listed
companies, accounting issues, industry experience and experience
in international business.
e Audit Committee is responsible for ensuring that the inde-
pendent position of the auditor is maintained, i.a. by staying
informed of ongoing consulting assignments. e Audit Committee
has also established guidelines for the services other than auditing
that the company may procure from its auditors.
Audit fees
Saab’s auditor receives a fee according to approved invoices as
resolved by the Shareholders’ Meeting.
PricewaterhouseCoopers has during  carried out services on
behalf of the company in addition to their audit assignments, con-
sisting of consultations closely associated with the audit, including
accounting and tax issues.
Auditors’ fees 2009–2011, the Group
MSEK 2011 2010 2009
Audit assignments:
PricewaterhouseCoopers AB 15 1 -
Ernst & Young AB - 10 13
Deloitte AB - 3 4
Other assignments:
PricewaterhouseCoopers AB 7 - -
Ernst & Young AB - 5 3
Deloitte AB - 2 2
Other, audit assignments 1 1 3
Financial reporting
e Board documents the manner in which it ensures the quality of
the nancial reports and how it communicates with the company’s
auditor.
e Board ensures the quality of nancial accounting through its
Audit Committee, according to the report submitted above. e Audit
Committee considers not only critical accounting questions and the
nancial reports presented by the company, but also matters of internal
control, regulatory compliance, potential material uncertainty in
reported values, post-statement events, changes in assessments and
evaluations and other circumstances that may aect the quality of the
nancial statements. e auditors have participated in six regular meet-
ings with the Audit Committee. ey have not participated in meetings
when the election of external auditors was discussed.
e entire Board reviews the interim reports before they are pub-
lished.
e company’s auditor attends the Board meeting at which the
annual accounts are approved.
e Board has met with the auditor to discuss their review of the
company for the nancial year . e Board has also met on one
occasion with the auditor without the presence of the CEO or any
other members of the Group Management.
The Board’s report on internal control of financial reporting
According to the Swedish Companies Act and the Code, the Board is
responsible for internal control. is report on internal control of the
nancial reporting has been draed on the basis of the Swedish
Annual Accounts Act.
Internal control over nancial reporting
Saab’s system of internal control is designed to assist the business
achieve its goals and manage the associated risks. Internal control
over nancial reporting is a part of all internal control processes
within Saab, the framework for which is developed by the Committee
of Sponsoring Organizations of the Treadway Commission (COSO).
Internal control over nancial reporting aims to provide reasona-
ble assurance of the reliability of external nancial reporting and to
ensure that it is prepared in accordance with legislation, applicable
accounting standards and other requirements on listed companies.
Control environment
e delegation of responsibilities is based on the Board’s rules of
procedure and an instruction, which sets forth the roles, responsibil-
ities and activities of the Board and the CEO.
Internal control is based on Saab’s organisation, where operating
responsibilities and powers are delegated to business areas and sup-
port units, which also receive support and are supervised by Group
functions with specic competencies. ese Group functions issue
Group guidelines that clarify responsibilities and powers and consti-
tute part of the internal control in specic areas such as nance,
accounting, investments and tenders.
Risk assessment
Saab’s operations are mainly characterised by the development, pro-
duction and supply of technologically advanced hardware and so-
ware for customers around the world. e major part of sales are
generated from countries outside of Sweden. As a rule, projects
entail considerable sums of money, stretch over long periods of time
and involve technological development or renement of products.
Based on Saab’s operations, the material risk areas in nancial
reporting are project accounting, acquisitions and goodwill, devel-
opment costs, hedging and other nancial transactions, leasing
operations, taxes and accounting for pensions. In addition to busi-
ness risks, the processes are also assessed on the basis of the risk of
exposure to any improprieties.
Group Finance continuously co-ordinates an overall risk assess-
ment of the nancial reporting. is process involves self-assess-
ments by the Group functions and business areas. e current risk
assessment is reviewed with Saab’s Internal Audit, which adjusts its
annual audit plan accordingly. Information on developments in
SAAB ANNUAL REPORT 2011 139
CORPORATE GOVERNANCE REPORT