Saab 2010 Annual Report Download - page 134

Guidelines for remuneration and other benefits to members
of the senior management
Details about the guidelines can be found in the administration report.
Audit fees
Saab’s auditors receive a fee according to approved invoices as
resolved by the Shareholders’ Meeting.
Ernst & Young and Deloitte have in the past four years carried
out services on behalf of the company in addition to their audit
assignment, including auditing activities over and above the audit
assignment, consultations closely associated with the audit involving
accounting and tax issues in connection with acquisitions and
restructurings, and with regard to the structure and implementation
of Saab’s share matching plans for the employees.
Auditors’ fees 2008–2010, the Group
MSEK 2010 2009 2008
Audit assignments:
Ernst & Young AB 10 13 14
Deloitte AB 3 4 4
Other assignments:
Ernst & Young AB 5 3 2
Deloitte AB 2 2 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 auditors.
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 three regular
meetings of the Audit Committee. ey have not participated in meet-
ings when the election of external auditors is discussed.
e entire Board reviews the interim reports before they are pub-
lished.
e company’s auditors attend the Board meeting when the annual
accounts are approved.
e Board has met with the auditors to discuss their review of the
company for the nancial year . e Board has also met on one
occasion with the auditors without the presence of the  or any other
members of 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 financial 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 ().
Internal control over nancial reporting aims to provide reason-
able 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 .
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 the produc-
tion, business assets and employees are based in Sweden, whereas
the majority 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
essential risk areas as well as a report on planned and executed activ-
ities in these areas are communicated regularly to Saab’s Audit Com-
mittee. Saab’s risk assessment is also communicated regularly to
Saab’s external auditors.
Information, communication and control activities
Internal control within Saab is based on clearly dened areas of respon-
sibility and authority, issued Group guidelines, processes and controls.
SAAB ANNUAL REPORT 2010 131
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