Internal audit

The Group’s internal audit is handled by the Company’s Internal Audit unit, which reports to the Chairman and the CEO.

The purpose of the Internal Audit is to analyse the Company’s operations and processes and the effectiveness and quality of its supervision mechanisms. The unit assists Finnlines to accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of the internal control and governance processes. The Internal Audit unit carries out its task by determining whether the Company’s risk management, internal control and governance processes, as designed and represented by the management, are adequate and functioning in a manner to ensure that:

• Risks are appropriately identified and managed.
• Interaction with the various governance groups occurs as needed.
• Significant financial, managerial and operating information is accurate, reliable and timely.
• Employees’ actions are in compliance with policies, standards, procedures and applicable laws and regulations.
• Resources are acquired economically, used efficiently and adequately protected.
• Programs and plans are properly implemented and objectives are achieved.
• Quality and continuous improvement are fostered in the Company’s internal control processes.
• Significant legislative or regulatory issues impacting the Company’s internal controls are recognised and addressed appropriately.

The head of the Internal Audit unit prepares an annual plan using an appropriate risk-based methodology and taking into consideration potential risks or control concerns identified by the management. The scope of the audits within a fiscal year is planned so that it is representative and the focus is set on the business areas with the biggest risk potentials. The plan is approved by the CEO. The internal auditor also carries out special tasks assigned by the Chairman, the CEO or the Board of Directors.

Internal auditor carries out the internal audits independently from operational units. In his auditing work the auditor complies with the corporate governance, ethical principles, policies and other guidelines of the Company as well as generally accepted standards for the professional practice of Internal Auditing.

The audit reports are sent to the CEO, the CFO and also to the Chairman.

The CEO and the CFO have at least once a year a closed session with the head of Internal Audit unit about the results of the conducted audits and the plans for the next period. Relevant issues are also brought to the attention of the Board of Directors.