The audit committee has at least three members. The Board shall elect members of the committee from among its members on an annual basis, for the duration of the Board's term.The members of the audit committee shall be independent of the company and at least one member shall be independent of a significant shareholder. On an annual basis, the Board of Directors shall likewise select one member as Chairman of the committee, for the term of the Board.
The members of the audit committee shall have the qualifications necessary to perform the responsibilities of the audit committee, in particular, sufficient knowledge of bookkeeping, accounting and financial statements practices.
Eero Hautaniemi is Chairman of the audit committee and the members are Sakari Lassila and Miikka Maijala.
The duties and operating principles of the audit committee are defined in a charter approved by the Board of Directors. The committee will convene at least four times a year.
The duties of the audit committee include:
• monitoring the financial position and financing
• monitoring the reporting process of financial statements
• supervising the financial reporting process
• monitoring the efficiency of the company’s internal control, internal audit and risk management systems
• reviewing the internal control policy
• reviewing the plans and reports of the company's internal audit
• reviewing the company’s corporate governance statement including the description of the main features of internal control and risk management systems pertaining to the financial reporting process• monitoring the statutory audit of financial statements and consolidated financial statements
• evaluating the independence of the auditing company
• evaluating the provision of non-audit services to the company to be audited by the auditing company
• preparing the proposal and/or recommendation for the Auditor of the company
• maintaining contact with the company's auditor and reviewing the reports prepared to the committee by the Auditor
• assessment of compliance with laws and provisions.
The audit committee met seven times during 2011. The attendance per cent of the members at the meetings was 100.