Konecranes’ Internal Audit function is an independent unit, which assists the organization in achieving its objectives. The unit evaluates the efficiency of risk management, control and governance processes.

Internal Audit operates according to an audit plan approved by the Board’s Audit Committee. The unit’s working methods are based on the professional standards laid down by the Institute of Internal Auditors (IIA) and focus on process-oriented engagement rather than solely entity-based auditing. Internal audit results are reported to audited units’ operative management, local subsidiaries’ Chair of the Board (internal Board) and relevant KLT members. Remediation follow-ups are coordinated by Internal Audit and the Group Internal Controls function. Remediated findings are verified by Internal Audit in separate re-audits.

In 2023, the Internal Audit Team conducted 41 planned audits according to an approved annual audit plan. As part of ongoing risk assessment process, the plan was specified during the year. Internal audits in 2023 generally covered 54 key controls, and the risk-based part 42 operational controls. Also, sample sizes varied from limited to wide based on the analyzed risk level. The internal audit annual plan covered 40 percent of active operational legal entities, all Financial Service Centers  (FSSC) in Tallinn, Xiamen and Klang, and centralized  functions, such as Procurement Service Center, Global  IT Services, and HR Services in the U.S., Germany, China,  and Finland. Additionally, Internal Audit conducted or participated in 1 audit based on the compliance and ethics risk assessment.

All Internal Audit activities are reported to the Konecranes Leadership Team and the Board’s Audit Committee on a regular basis. Internal Audit is responsible to the Audit Committee.

 

Last modified: Apr 11, 2024