Control activities and monitoring
Follow-up and control routines of the operations are performed regularly based on established goals. The board performs its control measures largely through the quality and sustainability committee as relates to quality risk and the audit committee as relates to financial risks.
The internal control as regards financial reporting consists of various defined processes which includes the internal authority structure, manual and automated controls and verifications, documentation of financial procedures and policies for each area. Ambea also has an established control structure which includes three level in the organisation: controllers within every divison, a comprehensive company finance function and ultimately the audit committee.
In addition to control activites on a process level, a number of central group controls are performed, for example thorugh monthly financial and operational reporting and the formalised budget and forecast processes. The company’s key financial reporting processes are evaluated on an ongoing basis by the CFO and others in the financial department, who in their turn report to the audit committee. The company’s auditor reviews selected parts of the financial risk governance and reports the outcome to the audit committee.
Ambea’s follow-up work of financial internal control is mainly done through an ongoing process of monitoring performance in relation to set targets and through the development of key ratios with focus on early warning signals.
The system for internal control as regards the financial reporting aims at ensuring a reliable reporting and follow up of Ambea’s quality results and to ensure a requisite monitoring and compliance of the company’s policies, principles and instructions and of law and other requirements. To measure the quality of its operations Ambea, among other things, conducts ongoing quality surveys and prepares quality reports.
Compliance with policies and laws are checked and any deviations and identified risks within the framework of control procedures leads to corrective measures, improvement of processes, routines and supervision after being prepared within the executive management or the board of directors. In addition to the managing director’s and the executive management’s daily work with risks in the operations and financial reporting the managing director presents an annual comprehensive group risk analysis, including all identified risks of Ambea and a plan including measures as regards the highest prioritised risks.