The Internal Audit department ensures objective and independent assessment of the adequacy, efficacy and quality of the Group’s internal controls. The head of Group Internal Audit reports to the chairman of the Audit Committee and with a dotted line to the CFO, and the Audit Committee must approve the appointment and potential dismissal of the head of Group Internal Audit. Group Internal Audit works in accordance with a charter and Terms of Reference approved by the Audit Committee.
Group Internal Audit conducts an annual review of business risks. On the basis of this and input from the Supervisory Board, the Audit Committee and senior executives in the Group, an audit plan is drawn up for the year. The plan is reviewed and approved by the Audit Committee and the Supervisory Board. Group Internal Audit is responsible for planning, executing and reporting on the audit performed. The reporting includes observations and conclusions, together with suggestions for improvements to the internal controls in each area audited.
When conducting an audit, Group Internal Audit assesses whether the audited entity/function has well-established accounting practices, written policies and procedures in all important business areas, and adequate internal control procedures. This includes the assessment of whether controls in relation to key IT systems are satisfactory, and whether they comply with the IT Policy.
In April 2010, the Carlsberg Group launched the Carlsberg Group Whistleblower System, which enables employees to report activities that may involve criminal conduct or violations of the Carlsberg Group’s policies and guidelines.
The Whistleblower System consists of a website and a hotline set up by an independent third party to ensure the highest level of security and confidentiality. Reports filed through the Whistleblower System are handled by a few specific employees within Group Internal Audit who are charged with the responsibility of evaluating any potential violation. Group Internal Audit regularly reports to the Audit Committee on issues reported via the Whistleblower System and action taken as a result thereof.