Control activities are designed to prevent, identify and correct errors and deviations in financial reporting, i.e. specifications of the control activities that shall be included in each business process to ensure and maintain a uniform level of internal control over financial reporting within the Group.
Control activities are integrated in processes for accounting and financial reporting and include, among other things, routines for authorization and signing for the Company, reconciliation of bank balances and accounts, analysis of results, segregation of duties, automatic controls integrated in IT systems, and control of the basic IT environment.
The Group maintains several control processes for financial reporting and is running a project to identify and standardize key processes and controls within the Group. The control function, like financial responsibility, follows the Company’s organizational and responsibility structure.
Husqvarna Group also has a function for internal control. The objective of Group Internal Control is to provide support for Group Management and the management of the divisions, enabling them to continually provide solid and improved internal control relating to financial reporting. The tasks performed by the Internal Control function aim to ensure compliance with policies, instructions and guidelines as well as to create efficient conditions for specific con¬trol activities in key processes related to financial reporting. The Audit Committee is informed of the results of the work carried out by the Internal Control function.
Each operative unit has a controller whose responsibilities include ensuring that the unit’s internal controls comply with Group standards, as well as compliance with Group guidelines and principles. The controller is also responsible for ensuring that fi¬nancial information is correct and complete and that it is delivered on time. Country Officers are appointed by Husqvarna Group in each country where the Group has subsidiaries. The duties of the Officers include safeguarding the interests of shareholders as well as identifying and reporting risks linked to fiscal regulations and other legislation.
Group Management performs monthly reviews of the results for the Group and the operative units, as well as updated forecasts, plans and strategic issues.