Saab 2014 Annual Report Download - page 62

organisation, people and leadership. e President does not partici-
pate in this evaluation.
PRESIDENT AND CEO
e President and CEO of Saab, Håkan Buskhe, is also a member of
the Board. His signicant professional commitments outside the
company, earlier positions and shareholding are set forth in the pre-
sentation of the Board of Directors and the Group Management; see
pages 60-62. Håkan Buskhe does not own shares nor is he a partner
in any company with which Saab has material business ties.
GUIDELINES FOR REMUNERATION AND OTHER BENEFITS FOR
SENIOR EXECUTIVES
e guidelines for remuneration and other benets for senior execu-
tives are explained on pages 63–64.
AUDITOR
On behalf of the shareholders and in accordance with current laws
and regulations, the external auditor examines the nancial state-
ments, group accounts, annual report, and administration and mana-
gement of the company by the Board of Directors and the President,
and also carries out the statutory audit of the Corporate Governance
Report. In addition, the Q1, Q2 and Q3 interim reports have been
reviewed by the auditor. e auditor also presents an Auditors’
Report to the Annual General Meeting.
e Shareholders’ Meeting elects the auditors. Pricewaterhouse-
Coopers AB was the rm elected as the new auditor by the Annual
General Meeting 2011 for the period 2011–2015. Election of auditors
will be held at the Annual General Meeting 2015.
PricewaterhouseCoopers (PwC)
• Elected in 2011 for the term until the Annual General Meeting
2015.
• Håkan Malmström, Authorised Public Accountant, Auditor in
charge. Other audit assignments: Axel Johnson, Karo Bio, NCC,
Nordstjernan.
• Anna-Clara Af Ekenstam, Authorised Public Accountant. Other
audit assignments: Swedish Cellulosa SCA AB and Knowit AB.
PricewaterhouseCoopers AB is a member of PwC’s global network in
around 150 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, including by staying
informed of ongoing consulting assignments. e Audit Committee
has also established guidelines for 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 resol-
ved by the Annual General Meeting.
PwC has performed services on behalf of the company in 2014 in
addition to its audit assignments, consisting of related consultations,
including on accounting and tax issues.
AUDITORS’ FEES FOR THE GROUP, 2013–2014
MSEK 2014 2013
Audit assignments:
PwC 18 16
Others 2 2
Other assignments:
PwC 3 4
THE BOARD’S REPORT ON INTERNAL CONTROL
OF THE FINANCIAL REPORTING
Under the provisions of the Swedish Companies Act and the Code,
the Board of Directors is responsible for internal control. is report
on internal control of nancial reporting has been prepared pursuant
to the provisions of the Swedish Annual Accounts Act.
Financial reporting
e Board of Directors documents the manner in which it ensures
the quality of the nancial reports and how it communicates with the
company’s auditor.
e Board of Directors 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, chan-
ges in assessments and evaluations and other circumstances that may
aect the quality of the nancial statements. e auditor participated
in ve of six meetings with the Audit Committee in 2014.
e entire Board of Directors reviews the interim reports before
they are published.
e Board of Directors has met with the auditor to discuss their
review of the company for the nancial year 2014. e Board of
Directors has also met on one occasion with the auditor without
the presence of the President or any other members of the Group
Management.
Internal control over financial reporting
Saab’s system of internal control is designed to assist the business in
achieving its goals and managing associated risks. Internal control
over nancial reporting is part of all internal control processes within
Saab, the framework for which is developed by the Committee of
Sponsoring Organisations of the Treadway Commission (COSO).
Internal control over nancial reporting aims to provide reasonable
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 for listed companies.
Control environment
Delegation of responsibilities is based on the Board of Directors’
rules of procedure and a directive which sets forth the roles,
responsibilities and activities of the Board and the President.
Internal control is based on Saab’s organisation, where operating
responsibilities and powers are delegated to business areas and
support units, which are also supported and supervised by Group
functions with specic competencies. ese Group functions issue
Group guidelines that clarify responsibilities and powers and
constitute part of the internal control in specic areas such as nance,
accounting, investments and tenders.
58 – SAAB ANNUAL REPORT 2014