Audit committee

Members are Meg Tivéus (chairman), Andrew Cripps and Joakim Westh.

Although the Committee’s work is primarily of a preparatory and advisory nature, the Board of Directors delegates decision-making authority on specific issues to the Committee. The Committee is responsible for overseeing procedures for accounting and financial reporting and for the organization of internal control. It also oversees the audit of the Group’s accounting records. Its reviews focus on the quality and integrity of the Group’s financial statements and related disclosure, the performance of the Company’s internal control function and independent auditors, the independent auditors’ qualifications and independence, the Group’s compliance with applicable laws and regulations and, as required, related party transactions. In conjunction with the Audit Committee’s review of the financial reports, the members of the Audit Committee also discuss accounting issues relating to the Company’s financial reporting. The Audit Committee also establishes guidelines by which services other than auditing may be secured from the Company’s auditors. The Audit Committee also discusses other important issues relating to the Company’s financial reporting and reports its observations to the Board.

Decision-making powers have been delegated to the Committee by the Board pertaining to:

• advance approval of non-audit services to be provided by the auditors;
  
• advance approval of transactions between the Company and related parties;
  
• matters pertaining to special review of interim reports by auditors, and
  
• the need for a separate review function (internal audit).

The Chairman of the Committee kept the Board of Directors informed on an ongoing basis of the work and decisions of the Committee throughout the year.

In consultation with Committee members, the Chairman of the Committee shall decide where and how frequently the Committee shall meet. The number of meetings in 2010 was five. The Company’s auditors participated in all of the meetings of the Audit Committee in 2010 and, at two of these meetings, also met with the Committee without the presence of Company representatives. The head of Internal Audit met separately with the Committee without the presence of management at two of the Committee meetings.