Internal Control
Evolution’s control system has been developed to ensure accurate, reliable financial reporting and accounting in accordance with applicable laws and rules, accounting standards and other requirements for listed companies.
The foundation of the control environment is defined through policies, routines and manuals, and is upheld with the help of the company’s organisational structure with clearly defined responsibilities.
Control environment
The Board of Directors bears the ultimate responsibility for an effective system of internal control and risk management being in place. Critical accounting issues and issues related to financial reporting are addressed by the Board and in the Board’s Audit Committee. To ensure a well-functioning control environment, the Board of Directors has established a number of policies relevant to corporate governance and financial reporting. These include the Board’s rules of procedure, CEO instructions and reporting instructions for financial reporting. The company also has a financial handbook, which includes principles, guidelines and process descriptions for accounting and financial reporting. At the statutory Board meeting following the Annual General Meeting, a formal work plan is established for the Board and instructions for the work of the Group CEO are determined, in which responsibilities and powers are further defined.
The Board has appointed an Audit Committee, tasked with preparing the Board’s work with regard to quality in the financial reporting and processes for managing the business risks of the company and the group, as well as monitoring the company’s financial reporting and assisting the Board in assuring the effectiveness of the company’s internal control, internal audit and risk management.
The CFO regularly reports to the Audit Committee and works together with the company’s finance function to develop and improve the internal control with regards to the Group’s financial reporting, both proactively with a focus on the internal control environment, and by reviewing the effectiveness of internal control.
Responsibility for the daily work of maintaining the control environment rests primarily with the Group CEO. The Group CEO reports regularly to the company’s Board of Directors.
The Board of Directors in its entirety or any one Board Member together with the Chairman of the Board may sign on behalf of the company. In addition, the company’s CFO and CLO together are entitled to sign on behalf of the company.
In accordance with the Swedish Companies Act, the Group CEO may sign alone on behalf of the company regarding duties which the Group CEO is obliged to carry out pursuant to section 29 of the Swedish Companies Act.
For more information about internal control and risk assessment, please refer to Evolution’s 2019 annual report.
