NWG Annual Report 2019 - EN NWG Annual Report 2019 - EN | Page 45

NWG // CORPORATE GOVERNANCE
Sales channels
The Group’s products are sold via two sales channels,
promo and retail.
Concept groups
Within each operating segment there are a number
of concept groups responsible for strategic direction,
product development and marketing strategy for one
or more brands.
Internal auditing
The Group has developed control and internal
control systems whose compliance is followed up by
the respective company management as well as by
the Group's central finance department. The Board’s
methods of monitoring the Group's assessment of the
internal control include contact with the company’s
auditors and the Audit Committee, to which the Group
internal auditor reports.
Auditor
At the AGM, the accounting firm Ernst & Young
AB was appointed as auditor. Nina Bergman is the
head auditor and among her other engagements are
Semcon, Precomp and Zenuity. Nina Bergman owns
no shares in New Wave Group.
Audit work
The Group applies International Financial Reporting
Standards (IFRS ) when preparing the Group’s reports.
The Group’s interim report for the third quarter is the
subject of a general review by the company’s auditor.
This review follows the recommendations issued
by FAR SRS, the organization for authorized public
accountants. The audit of the annual report, conso-
lidated financial statements, the accounts and the
administration of the Board and CEO is conducted
in accordance with generally accepted auditing
standards in Sweden.
After the auditors’ review in October and January,
they prepare audit memos to the Board containing
comments about individual companies and the Group
as a whole. The auditors also present in person, a report
of their observations from the audit, their appraisal
of the Group’s internal control and the application
of accounting policies at one of the autumn Board
meetings. The Board thereby receives information
about internal control and compliance with rules,
control of financial reporting, estimates, assessments
and other matters that might influence the quality of
the financial reports.
Articles of association
The articles of association are adopted by the AGM
and contain fundamental facts about the company,
e.g. what kind of business the company will run, the
size of the share capital, the number of shares issued,
the size of the Board of Directors and the procedure for
convening the AGM. The company’s articles of asso-
ciation state, among other things, that the Board of
Directors shall consist of at least three and no more
than seven members, that the Board has its registered
office in Gothenburg, and that a class A share shall
carry ten votes and a class B one vote. The complete
articles of association are available at the New Wave
Group website, www.nwg.se.
ANNUAL REPORT // 045