Internal supervision and audit

Internal control

The purpose of the Company’s internal control is to ensure that the Company operates efficiently, information published by it up-to-date and reliable, and that valid regulation is complied with. Internal control seeks to enhance the implementation of the Board of Directors’ control function. The Board of Directors bears the main responsibility for the supervision of accounting and finance. The cornerstones of internal control within the Company are group-level guidelines, defined controls in operational processes, and the regular assessment of deviations.

Internal control of financial reporting

Financial reporting processes are an integral part of the Company’s internal control system. The objective of the internal control of financial reporting is to ensure that Siili’s operations are productive and that decision-making is based on accurate and reliable information as well as an adequate identification of business risks. Internal control also helps ensure that financial reporting, including financial statements and half-yearly reports, are compliant with generally accepted standards as well as valid laws and regulations.

The Board of Directors is responsible for ensuring that the internal control of accounting and financial management is arranged appropriately. The Audit Committee of the Board of Directors supervises the financial reporting process and the effectiveness of related control measures. The chief financial officer is responsible for reporting observations to the members of the Board of Directors.

Business directors are responsible for reporting on matters concerning their own unit’s development, strategy and annual plans as well as business and profit developments and internal organisation of the unit. The CFO reports the operational result on a monthly basis to the Board of Directors and the management team. Reporting as well as related analyses and comparisons are a key part of control and supervision conducted using financial reporting. The Board of Directors and the management team of the Company review financial reports regularly and monitor the materialisation of the most recent forecasts and budgets on a monthly basis. If the materialised results deviate from them, the members of the management team are responsible for launching corrective actions.

The group’s accounting and controller function is responsible for defining uniform accounting and reporting principles, providing instructions and developing the reporting system on a continuous basis. Siili’s subsidiaries have their own accounting, and they report external reporting figures on a monthly basis to the parent company as instructed by it. The group’s accounting department takes care of the group’s internal and external accounting and validates external reporting before it is submitted to the Board of Directors. The accounting and related support functions for the subsidiaries of the Siili Group have mainly been outsourced to external service providers, which report directly to group accounting in accordance with defined reporting models. All group companies apply a uniform reporting model and chart of accounts. The group accounting department instructs the subsidiaries in the compilation of half-yearly reports and financial statements and prepares the consolidated financial statements.

Internal audit

The Company has a group internal audit function. The CFO is responsible for organising it. An external audit firm is employed in the practical audit activities. The function reports to the Company’s Audit Committee and the Board of Directors. The Audit Committee is briefed on the results of internal audit by the audit firm carrying out internal audit, and it monitors and supervises the implementation of corrective actions within the Company.