Internal auditing is an independent and objective assessment, assurance and consulting activity designed to add value to Metsä Board and improve its operations.
Internal auditing assists the Board of Directors in its supervisory role and supports Metsä Board and its management in achieving the Company’s objectives by providing a systematic approach to assessing and improving the effectiveness of risk management, control, governance and management processes.
Metsä Board's internal auditing is carried out by Metsä Group's internal audit unit. Audit work is carried out in compliance with the internal audit guidelines approved by the Audit Committee. The internal audit function reports to the Audit Committee on operations and to Metsä Group's President and CEO on administration.
Internal auditing draws up a six-monthly action plan which is approved by the Audit Committee. Auditing is risk-based and focuses on the Company’s activities and units that are considered to be key to achieving the objectives set for the operations. In cooperation with the audit function, internal auditing sees to the coordination of plans to ensure adequate coverage of auditing and avoid overlapping work. Similarly, cooperation is carried out with Metsä Group's other assurance functions such as risk management, internal controls and compliance.
The results of the audit are compiled in an audit report, which is shared with Metsä Board's CEO and CFO, the management of the audited entity, the persons in charge. The audit reports are submitted to Metsä Group’s President and CEO, CFO, auditor and to other Group management if required for the purposes of information.
Internal auditing provides the Audit Committee with a six-monthly summary report on the audits carried out, the main findings and recommendations, and the management action plans and their implementation. The Chair of the Audit Committee and the Audit Director also meet regularly without the presence of management.