Internal Control
Investor's Internal Control function serves as an objective support function to the board for internal control processes. The Internal Control function assesses important areas of risk and follows up specific control measures in selected areas. The Internal Control function plans its work in consultation with the Audit Committee, Investor’s management and Investor’s external auditors. Findings from reviews are reported to the Audit Committee.
The active work with internal control each year is described in the Board of Directors' Report on Internal Control, which is a seperate section in the Corporate Governance Reports (see link to the right).
Investor’s system of internal control for the investment activities over financial reporting is designed to manage risks involved in the processes related to financial reporting and to assure a high level of reliability in external reporting. Investor’s main business is the management of financial transactions and the company’s internal control over financial reporting is focused primarily on ensuring efficient and reliable management of and accounting for purchases and sales of securities and accurate valuation of holdings of securities.
The wholly owned subsidiaries, Mölnlycke, Aleris and Grand Group, have their own systems for internal control within their respective operating business. The effectiveness in the operating subsidiaries’ internal control, risk management and financial reporting is managed by respective company’s Management Group and is reported to respective company’s Board.
Internal control is commonly described according to the framework for internal control issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). According to this framework, internal control is described as comprising the control environment, risk assessment, control activities, information, communication and
monitoring.
The control environment is the foundation of internal control, formed by internal policies and instructions and laws and other external regulations.
Risk assessment comprise identification and evaluation of the company’s risks. See further in section Risk and Risk management (see link to the right).
Control activities aim to prevent, detect and rectify weaknesses and deviations.
Guidelines for Information and communication of financial information aim to ensure accurate and comprehensive information both internally and externally.
Monitoring of the effectiveness of the internal control in processes, risk assessment and control activities is made continuously.
Information updated 2011-03-17 08:14:04