Monitor the financial reporting process and the statutory audit of the annual and consolidated financial statements, taking into account any findings and conclusions of the quality assurance review made by the competent authority

We advise and assist the Audit Committee to comply with the obligations to monitor the financial reporting process in accordance with section 31 (3, p.2) of the Danish Act on Approved Auditors and Audit Firms (the Directive, Article 39, paragraph 6 (b)), as well as complying with the obligations to monitor the statutory audit of the annual and consolidated financial statements, taking into account any findings and conclusions from the quality assurance review made by the competent authority, in accordance with section 31 (3, p. 4) in the Danish Act on Approved Auditors and Audit Firms (the Directive, Article 39, paragraph 6 (d)).

The Audit Committee shall monitor the financial reporting process and submit recommendations or proposals to ensure its integrity. The Audit Committee shall also monitor the statutory audit of the annual and consolidated financial statements. Findings and conclusions from the quality assurance review made by the competent authority, should be taken in to account.

Inspicio has the capability to advise and assist the Audit Committee in assessing the organizational structure and responsibilities of the company in order for the Audit Committee to conclude whether the organization and responsibilities in the accounting functions are appropriate and effective and whether adequate controls are executed. If the Audit Committee considers that there are deficiencies or improvement points which needs to be addressed, the committee shall make recommendations or suggestions for remedies, with which Inspicio may assist and advise.

The Audit Committee should ensure that the company's descriptions are adapted and updated, in particular when new legislation are adopted. With Inspicio as an independent adviser, the Audit Committee will ensure that such adaptation and updating takes place on a regular basis.

The Audit Committee shall contribute to ensure that the audit is conducted by independent, objective and competent auditors. In addition, the Audit Committee shall contribute to ensure that the conducted audit is of an audit quality that ensures that the financial statements are presented without significant errors or omissions. Monitoring and assessments can be quite complex to perform and may require considerable audit-technical insight. The auditor's stated level of materiality and risk assessment should be subject to a particularly careful assessment. This also applies to the auditor's stated "scoping", i.e. auditor's position on the scope of the group audit.

Inspicio has the capability to advise and assist the Audit Committee in the monitoring tasks and ensure that all relevant audit matters are addressed and discussed with the external auditor. Our assistance may include the preparing of proper documentation for the purposes of documenting that all relevant matters have been discussed.

In its review of the statutory audit, the Audit Committee shall consider the result of the latest quality assurance review of the audit firm. The Danish Business Authority annually publishes a report on the results of quality assurance reviews carried out in the major PIE audit firms. Inspicio provides assistance in reviewing and analyzing this report.