Scanfil Group’s internal control is a continuous process aimed at ensuring uninterrupted and profitable operations. Control minimises risks by ensuring that reporting is reliable and that the company adheres to laws and regulations.
The Group’s operating principles and guidelines are derived from shared values, ethical regulations and industry legislation, and form the foundation for Group’s internal control. The guidelines include procedures for core operations, such as drawing up sales and procurement contracts, recruiting and conducting business, and also cover exceptional circumstances.
Group and unit management hold the responsibility for the company’s internal control system. Internal control forms a proactive part of company’s management and administration. The Group’s operational management holds responsibility for developing the control system’s standardised operating processes. The Group’s financial administration supports and coordinates the financial management of the company.
The controls contained in operating processes form the basis for the company’s financial control. They enable the company to quickly identify and react to any deviations from the norm. Management’s monthly reporting is a fundamental part of financial control. It includes rolling forecasting, the result of business operations carried out, and an analysis of the differences between the forecast and actual result. The key performance indicators for monthly reporting highlight the requirements for control measures and have been set so as to support the targets of both the Group as a whole and its individual units. Due to the nature of business, the company does not employ budgeting in the traditional sense.
The interpretation and application of accounting standards is centralized to the Group’s financial administration. These standards form the basis for the Group’s reporting and accounting standards and shared recognition principles. In order to ensure reliable financial reporting, core functions are conducted using shared reporting tools and a globally consistent ERP. The use of standardised tools enables continuous control and successful change management.
Considering Group’s structure and extent, company does not have an separate internal audit organization. Company’s controller function is responsible for internal auditing and reports regularly to President and the Board of Directors.