Internal and external audits ensure accurate and responsible reporting.
Metso's Internal Audit assesses the efficiency and appropriateness of our operations and examines the functioning of internal controls. It seeks to ensure the correctness of financial and operational reporting, compliance with applicable laws and regulations, and proper management of the company's assets.
Additionally, Internal Audit proactively encourages the development of risk management in Metso's various operations. The head of Internal Audit reports administratively to the CFO, but has direct access also to the President and CEO and to the Chairman of the Audit Committee.
According to the Articles of Association, Metso has one auditor, which must be a firm of authorized public accountants. The aggregate duration of the consecutive terms of a principal auditor may not exceed seven years. This means that Metso’s principal auditor Mikko Järventausta can act in that capacity until the end of the audit of the 2024 financial period.
According to the EU’s statutory audit directive, the same audit firm can be engaged as the company’s auditor for a maximum period of 10 consecutive years, after which the company must put its auditing out to tender. If the same audit firm is reselected through tendering, it can be re-engaged as the auditor for up to a further 10 consecutive years, after which the audit firm must be changed.
In Metso’s case, this means that Ernst & Young Oy can act as Metso’s auditor until the end of the 2021 financial year. After this, Metso must put its auditing out to tender. If Ernst & Young Oy is reselected in the tendering, it can be re-engaged as Metso’s auditing firm consecutively until 2031 at maximum, after which Metso must change its audit firm.
The auditor’s statutory obligation is to audit the company’s accounting, financial statements and administration for the financial year. The parent company’s auditor must also audit the consolidated financial statements and other mutual relationships between Group companies.
In conjunction with our annual financial statements, the auditor gives Metso’s shareholders an Auditor’s Report as required by law.
The auditor reports primarily via the Audit Committee and at least once a year to the Board. The Audit Committee evaluates the performance and services of the independent auditors each year and
decides if there is aneed to arrange an open tender process.