Volvo 2012 Annual Report Download - page 92

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identify and communicate shortcomings and
areas of improvement in the processes for
financial reporting.
Follow-up
Ongoing responsibility for follow-up rests with
the Group’s financial reporting function. In addi-
tion, the Corporate Audit and the Internal Con-
trol functions conduct review and follow-up
activities in accordance with what is described
in the introduction of this report. More specifi-
cally, the Internal Control function runs and
coordinates evaluation activities through the
“Volvo Group Internal Control Programme,” with
the purpose of systematically evaluating the
quality of the internal control over financial
reporting on an annual basis. An annual evalua-
tion plan is established and presented to the
Audit Committee. This evaluation program com-
prises three main areas:
1. Group-wide controls: Self-assessment pro-
cedure carried out by management teams
at business area, Group Function and com-
pany levels. The main areas evaluated are
compliance with the Group’s financial direc-
tives and policies found in FPP, The Volvo
Way and the Group’s Code of Conduct.
2. Process controls at transaction level: Pro-
cesses related to the financial reporting
are evaluated by testing procedures/con-
trols based on a framework for internal
control over financial reporting, Volvo
Internal Control Standards (VICS). The
framework focuses on the financial
reporting areas deemed to have a relatively
higher risk for potential errors due to factors
such as complex accounting principles,
complex or changed business operations.
3. General IT controls: Processes for mainte-
nance, development and access manage-
ment of financial applications are evaluated
by testing procedures and controls.
The results of the evaluation activities are reported
to Group management and the Audit Committee.
Gothenburg, February 21, 2013
Volvo (publ)
The Board of Directors
To the annual meeting of the shareholders in AB
Volvo, corporate identity number 556012-5790
It is the Board of Directors who is responsible for
the Corporate Governance Report for the year
2012 on pages 74–88 and that it has been prepa-
red in accordance with the Annual Accounts Act.
We have read the corporate governance report
and based on that reading and our knowledge of
the company and the group we believe that we
have a sufficient basis for our opinions. This
means that our statutory examination of the
Corporate Governance Report is different and
substantially less in scope than an audit con-
ducted in accordance with International Stan-
dards on Auditing and generally accepted audi-
ting standards in Sweden.
In our opinion, the Corporate Governance
Report has been prepared and its statutory
content is consistent with the annual accounts
and the consolidated accounts.
Gothenburg, February 21, 2013
PricewaterhouseCoopers AB
Peter Clemedtson
Authorized Public
Accountant
Lead Partner
Johan Rippe
Authorized Public
Accountant
Partner
Auditors report on the Corpo-
rate Governance Report
88
CORPORATE GOVERNANCE REPORT 2012 CORPORATE GOVERNANCE