auditsvaliokunta

The term "auditsvaliokunta" refers to the Audit Committee in Finnish. Audit Committees are crucial components of corporate governance, particularly in publicly traded companies and other organizations. They are typically established to oversee the financial reporting process, the audit process, and the effectiveness of internal controls.

In Finland, the establishment and operation of an Audit Committee are often guided by the Finnish Corporate Governance Code, which is based on the principles of the EU's Shareholder Rights Directive. The Audit Committee is usually a subcommittee of the board of directors, consisting of a few members who are often non-executive directors to ensure independence.

The primary responsibilities of an auditsvaliokunta include monitoring the financial reporting process, ensuring the integrity of the company's financial statements, and overseeing the external audit process. This includes the selection, appointment, and oversight of the external auditor. The committee also plays a key role in reviewing the effectiveness of the company's internal audit function and internal control systems.

Additionally, the Audit Committee is responsible for ensuring that the company complies with legal and regulatory requirements, as well as for addressing any issues related to risk management and corporate governance. In Finland, the Audit Committee's role is particularly important given the country's strong emphasis on transparency, accountability, and good corporate governance practices.

The specific duties and composition of an auditsvaliokunta can vary depending on the size and structure of the organization, as well as any applicable regulatory requirements. However, the overarching goal is to enhance the quality and reliability of financial reporting and to safeguard the interests of shareholders and other stakeholders.