Auditing

Under its Articles of Association, HKScan shall have at least one and a maximum of two auditors who must be auditors accepted by the Central Chamber of Commerce (CPA) or auditing firms. If only one auditor is appointed for the Company, and it is not an auditing firm approved by the Central Chamber of Commerce, one deputy auditor must be appointed.

The task of statutory auditing is to verify that the financial statements give a true and fair view of the result and financial position of the HKScan Group in the financial period audited. The auditor submits to the shareholders an auditor’s report as a part of the annual financial statements and also provides the Audit Committee with regular reports on his/her observations.

Auditors are elected annually in the Annual General Meeting. Authorised Public Accountant Firm Ernst & Young Oy was elected as the auditor, with APA Erkka Talvinko as the main auditor, until the end of the next Annual General Meeting. Audit fees paid by the Group to the auditors are presented below. The audit fees are in respect of the audit of the annual accounts and legislative functions closely associated therewith. Other expert services include tax consulting and advisory services in corporate arrangements.

 Year 2017 2016
Audit fees -498 -599
Tax consultation -15 -13
Other fees -767 -379
Audit fees, total -1280 -991

 

Internal control

The Company’s internal control framework is within the remit of Board of Directors. HKScan Group’s management is responsible for maintaining and further developing effective internal control. Internal control aims to ensure compliance with laws and regulations as well as HKScan’s values and internal policies and guidelines. The internal control system has the further objective of supporting activities in line with HKScan’s strategy. The reliability of financial reporting and measures in the service of this goal are an integral component in the Company’s internal control framework.

A more detailed account of internal control is presented in HKScan’s Corporate governance statement 2017