1. The Board of Directors’ nomination of an auditor candidate
The Committee recommends that having consulted the Executive Board, the Board of Directors makes a specific and critical assessment of the auditor’s independence and competence, etc., to be used in connection with the nomination of a candidate at the general meeting.
2. Agreement with the auditor
The Committee recommends that the auditor agreement and the auditor’s fee are agreed between the company’s Board of Directors and the auditor.
3. Non-audit services
The Committee recommends that every year, the Board of Directors lays down the overall, general scope of the auditor’s provision of non-audit services with a view to ensuring the auditor’s independence, etc.
4. Internal control systems
The Committee recommends that at least once a year, the Board of Directors reviews and assesses the internal control systems within the company as well as the management’s guidelines for and supervision of such systems and that the Board of Directors considers the extent to which this function is able to assist the Board of Directors in this work.
5. Accounting policies and accounting estimates
When the Board of Directors reviews the annual report (or a draft of it) together with the auditor, the Committee recommends that particular efforts are made to discuss the accounting policies applied in the most important areas as well as important accounting estimates and that the expediency of the accounting policies applied are assessed.
6. Result of the audit
The Committee recommends that the result of the audit is discussed at meetings with the Board of Directors for the purpose of reviewing the auditor’s observations and opinion, possibly on the basis of the long-form audit report.
7. Audit committee
In companies with complex accounting and audit conditions, the Committee recommends that the Board of Directors considers establishing an audit committee to assist the Board of Directors in accounting and audit matters.