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 the 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 2024, the Internal Audit Team conducted 41 planned audits according to an approved annual audit plan. The internal audit approach was changed from revenue-based to a clearly more risk-based approach. The basis for the internal audit plan was a country risk analysis. As a part of the ongoing risk assessment process, the plan was specified during the year. Internal audits in 2024 generally covered applicable key controls (51), and on risk basis selected operational controls (41). 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 selected centralized functions, such as Global IT Services, and Centralized Finance Services in China. Additionally, Internal Audit conducted or participated in compliance and ethics risk assessments on need basis.
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.