Independent auditing support:

Review, analysis and suggestions for improvement

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An audit involves an independent auditor, who is not affiliated with the company, reviewing a company's financial statements and its management's administration to determine whether the information provided in the annual report is accurate and whether the company complies with the rules applicable to its accounting and administration. The results are reported both to the company and in a public audit report. Below you can read more about how auditing works.

Auditing reduces the risk of annual reports containing errors and various stakeholders making decisions on incorrect grounds. A lower risk of errors reduces various stakeholders' needs for supplementary information, which can mean better terms for the audited company. For this reason, audited companies often receive better ratings from credit rating agencies than unaudited companies, all other things being equal, and interest rates on bank loans may be lower for audited companies than for unaudited companies.

Better-prepared companies

An important purpose of auditing is to identify risks and detect errors and shortcomings at an early stage so that they can be corrected before the annual report is finalised or so that information can be added to make it clearer to the reader what has happened. The auditor also makes various suggestions for improvement and acts as a sounding board for company management. In this way, we contribute to reputable companies that are better prepared to handle changes and risks.

In the audit report, the auditor confirms by their statements that the annual report has been prepared in all material respects in accordance with applicable rules and that the company has been managed in accordance with applicable rules. If there are any remaining deficiencies or limitations, these are explained in the form of deviating statements or comments in the audit report. It is important to read what is actually stated and assess what this means for the reader's ecisions.

How the audit works

An independent audit is conducted in accordance with international auditing standards to ensure high quality. The purpose of the audit is to ensure that the annual report has been prepared in accordance with applicable rules and does not contain any material errors. This creates security and allows various stakeholders to rely on the audited information as a basis for decision-making. In addition, the audit verifies that the company has handled taxes and fees correctly and that the board of directors and CEO have complied with the Companies Act and other rules.

An audit begins with a risk assessment. The auditor analyses not only the company but also the industry and other factors that affect the company to identify potential errors in the annual report and the company's management. The auditor also examines the controls in place within the company to prevent errors and to identify weaknesses and shortcomings in procedures. To further reduce the risk of errors, other significant items are also identified for further review.

Key areas are identified

The areas identified in the risk and materiality assessment are then reviewed further to ensure that there are no material errors or shortcomings in the annual report or the company's management. The auditor does this through various analyses, comparing information in the accounts with supporting documentation, requesting information, and visiting sites to verify that, for example, a significant inventory actually exists. While the auditor does not review everything, by concentrating the continued review on material areas in which the risk of error is greatest, the audit is made more efficient.

An important basis for decision-making

Once the audit is complete, the auditor reports on the results in the public audit report. The auditor assesses whether the annual report provides a true and fair view of the company's financial position and results in all material respects. If any material deficiencies or errors remain after the audit, this is stated in the audit report. The audit report may also contain important information unrelated to deficiencies or errors in the annual report. The audit report is an important basis for decision-making for banks, suppliers, customers and others.

During the audit, the auditor reports their observations directly to company management. Often, any errors and shortcomings can be corrected so that the annual report is accurate and the auditor can make suggestions for improving procedures. The auditor also provides other suggestions and tips to company management.

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