Overview of the internal audit
Internal audit assists the Board of Directors and Audit Committee in assessing and ensuring the appropriateness and effectiveness of Basware's internal control and risk management. Internal audits are performed in the Group's functions and units. Internal audits are performed annually based on long term internal audit plan. The long term internal audit plan is approved by the Board of Directors. Management and Board of directors review the observations and recommendations of the internal audits.
The Audit Committee assists the Board in fulfilling its oversight responsibilities for the financial reporting process, the system of internal control, the audit process, and Basware's process for monitoring compliance with laws and regulations.
The audit shall be performed by an audit firm authorized by the Auditor Oversight Board of the Finnish Patent and Registration office. The management makes a recommendation to the Board, who is responsible for making a formal proposal to the Annual General Meeting of for audit firm to be selected. The audit firm selected has overall responsibility for co-ordination of audits for the whole group (audit plans for each Group company) and their cost, together with the CFO of Basware Corporation. Moreover, if required, a local authorized audit firm can be selected to carry out the audit required by local legislation with a prior approval by the CFO.
The Annual General Meeting elects an auditor approved by the Finnish Central Chamber of Commerce as the company’s auditor. In 2016, Authorized Public Accountant Firm Ernst & Young Oy was elected as the company’s auditor, and Ernst & Young Oy declared Terhi Mäkinen, Authorized Public Accountant, as the principal auditor. The auditor’s term expires after the conclusion of the next Annual General Meeting following the election.
In 2016, auditor was paid remuneration for audit services 246,889 euros and for non-audit services 329,330 euros.