Internal and External Audit

Internal audit

The Group does not have a separate Internal Audit organization due to the size of the Group’s operations. The Group Finance is responsible for regular reviews of financial performance and internal control procedures at all Group companies and reporting significant findings to the President and Chief Executive Officer and the Board. From time to time, the management conducts or buys external services, if needed, to conduct specific and limited internal audits.

The managing director and the controller of subsidiaries under audit scope meet annually with the local auditors to discuss internal control and statutory compliance issues. The auditors of subsidiaries provide an audit opinion to the auditors of the corporation at the conclusion of each annual audit.

Annual audit may also give rise to the preparation of a management letter to the corporation outlining their audit findings in greater detail and recommending any improvements in internal controls. In addition, the auditors of the corporation meet regularly with the Group management representatives to discuss and review the business and related financial, accounting, internal control and risk management issues.

As of January 1, 2024 Jean-Philippe Nicolle was appointed as Chief Operating Officer responsible for Internal Auditing.

External audit

An external audit is performed annually in Group companies under audit scope and for the consolidated Group. Deloitte Oy auditor firm was elected as auditor in the annual general meeting on the 18th of April 2024. As the auditors of the parent company, Deloitte Oy is responsible for instructing and coordinating the audit in relevant Group companies. The auditor with principal responsibility is Jenny Lindvall, CPA. It was decided in the annual general meeting on that the fee of the auditor will be paid as according to an invoice accepted by the corporation. During the financial year 2024 the auditors of the corporation were paid altogether EUR 0.8 million (2023: EUR 0.7 million) as auditing fees and EUR 0.0 million (2023: EUR 0.2 million) as of services not associated with auditing.

Annual general meeting decided that Deloitte Oy carries out the assurance of Rapala VMC Corporation’s sustainability reporting for the financial year 2024 in accordance with the transitional provision of the act amending the Finnish Companies Act (1252/2023) and will be reimbursed for this task as per its invoice approved by the Rapala VMC Corporation.