Control activities are designed to prevent, identify and correct errors and deviations in the financial reporting.
Husqvarna Group has defined internal control standards, i.e. specifications of the control activities that shall be included in each business processes in order 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 others, 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.
Husqvarna Group has in 2014 established a function for Internal Control. The objective of the Group Internal Control function is to provide support to the Group Management and the Management of the Divisions, enabling them to continuously provide solid and improved internal controls relating to financial reporting. The tasks performed by the Internal Control function aim to ensure compliance with policies, instructions and guidelines, and to create efficient conditions for specific control activities in key processes related to financial reporting. The Audit Committee is informed of the results of the work performed 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 as stated in Husqvarna’s Accounting Manual. The controller is also responsible for ensuring that financial information is correct and complete and is delivered on time. Country Officers are appointed by Husqvarna Group in each country where the Group operates subsidiaries. The Officers’ duties include safeguarding the interests of the 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 for the operative units, as well as updated forecasts, plans and strategic issues.