Saab 2015 Annual Report Download - page 56

AUDITOR
On behalf of the shareholders and in accordance with current laws and
regulations, the external auditor examines the nancial statements,
consolidated accounts, annual report, and administration and manage-
ment 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 re-elected as the new auditor by the Annual
General Meeting 2015, for the period 2015–2019.
PricewaterhouseCoopers (PwC)
• Elected by the Annual General Meeting 2015 for the period 2015
through the Annual General 2019.
• Anna-Clara af Ekenstam, Authorised Public Accountant, Auditor
in charge as of the end of September 2015. Other audit assign-
ments: Svenska Cellulosa Aktiebolaget SCA, Knowit AB.
• Håkan Malmström, Authorised Public Accountant, Auditor in
charge during the period January – the end of September 2015.
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 practice with international business.
e Audit Committee is responsible for ensuring that the independent
position of the auditor is maintained, including by staying informed of
ongoing consulting assignments. e Audit Committee has also estab-
lished 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 resolved
by the Annual General Meeting.
PwC has performed services on behalf of the company in 2015 in
addition to its audit assignments, consisting of related consultations,
including on accounting and tax issues.
AUDITORS’ FEES FOR THE GROUP 2014–2015
MSEK 2015 2014
Audit assignments:
PwC 18 18
Others 2 2
Other assignments:
PwC 4 3
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 com-
pany’s auditor. e Board of Directors assures the quality of the nan-
cial accounting through the Audit Committee. e entire Board of
Directors reviews the interim reports before they are published. e
Audit Committe follow up on the internal control of the nancial
reporting on a regular basis. Aer each meeting of the Audit Commit-
tee, a report is submitted to the Board. For more information on the
Audit Committee, see above.
e Audit Committee considers not only critical accounting ques-
tions and the nancial reports presented by the company, but also mat-
ters of strategic importance, e.g., asset acquisitions and sales and how
the company will obtain nancing. It also covers issues such as 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 auditor participated in all meetings of the
Audit Committee in 2015.
e Board of Directors has met with the auditor to discuss their
review of the company for the nancial year 2015. e Board of Direc-
tors has also on the same occasion met with the auditor while not in the
presence of the President or any other members of the Group Manage-
ment.
Internal control over financial reporting
Saab’s system of internal control is designed to assist the business in
achieving its strategic and nancial goals by monitoring the company’s
risk exposure in a structured way. Internal control over nancial report-
ing is part of all internal control processes within Saab. e framework
for these processes is designed in accordance with the Committee of
Sponsoring Organisations of the Treadway Commission (COSO).
Internal control over nancial reporting aims to provide reasonable
assurance of the reliability of the internal and external nancial report-
ing and to ensure that it is prepared in accordance with legislation,
applicable accounting standards and other requirements for listed
companies.
Control environment
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 guide-
lines that clarify responsibilities and powers and constitute part of the
internal control in specic areas such as nance, accounting, invest-
ments and tenders.
Risk assessment
Saab’s operations are mainly characterised by the development, produc-
tion and supply of technologically advanced hardware and soware for
customers around the world. Slightly more than half of sales are outside
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, develop-
ment costs, hedging and other nancial transactions, taxes and
accounting for pensions. In addition to risks of inaccurate nancial
reporting, the processes are also assessed on the basis of the risk of
exposure to any improprieties.
Group Finance continuously coordinates an overall risk assessment
of the nancial reporting. is process involves self-assessments by
Group functions and business areas. e current risk assessment is
reviewed by 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 activities in these areas are com-
municated regularly to Saab’s Audit Committee. Saab’s risk assessment
is also communicated regularly to Saab’s external auditors.
Each business area designs its risk management routines and struc-
ture for internal control based on overall routines and Group guide-
lines. e most signicant risks identied as regards nancial reporting
are managed through control structures within the business areas and
52 – SAAB ANNUAL REPORT 2015