Internal control and audit
Internal audit has been incorporated into the responsibilities of Alma Media's business unit controlling.
Control and supervision of Alma Media's business operations take place in accordance with the administrative and management system described in Corporate Governance Statement. The Board of Directors is responsible for ensuring that the monitoring of the company's accounts and capital management is properly organised. The President and CEO ensures that the accounting procedures comply with legislation and that the company's capital management is organised in a reliable way.
The President and CEO, the Group Executive Team and the heads of the business units are responsible for ensuring that the accounting and administration of the areas within their spheres of responsibility comply with legislation, the Group's operating principles, and the guidelines and instructions issued by Alma Media Corporation's Board of Directors.
In Alma Media Group, the control over business unit administration and accounting is centralised in the Group financial department and the business unit financial departments. The Group financial department, working under the Group CFO, is the centralised source of financial statement data required by external accounting, as well as the analyses and result reports to Group and business unit management teams for following the profitability of business operations. Group internal control practices aim at ensuring the correctness of financial reporting within the Group. Business operations and capital management are monitored with the help of the reporting measures outlined above. The Group employs a reporting system following business unit financial matters. The reporting practices also assist in following the implementation of business unit action plans.
Given the nature and scope of its business, Alma Media Corporation does not consider it expedient to have a separate internal audit organisation. Internal audit functions have been incorporated into the responsibilities of Alma Media Corporation's business organisation and, in particular, the business function financial departments.
Reviewing the functionality of internal controls is also taken into account in the external auditors' audit plans. Internal audits look at the functionality of the various processes using flow test as well as control tests. Observations and action proposals are discussed with process owners, the financial management and the Board of Directors.