Internal audit

The Board of Directors has appointed a Group Chief Auditor. The Board has also approved functional specifications for the Group's internal audit function and verified the existence of an audit agreement between the Group's internal and external auditors.

The internal audit department is responsible for ensuring that

• the administrative and accounting policies of the Danske Bank Group are satisfactory
• written business procedures are laid down for all material areas of activity
• adequate internal control procedures are in place
• the use of IT is controlled and secured in accordance with the control policies decided on the general assembly.
  
  

In addition, the Audit Department must ensure that the rules set forth by management regarding security and control are incorporated into the business procedures.

The functional specifications and the audit agreement
The functional specifications and the audit agreement set out detailed guidelines for the Board's collaboration with the auditors regarding the financial control of the Group, including risk management control, and for the division of duties between the internal and external auditors.

The functional specifications and the audit agreement are prepared on the basis of the executive order on the performance of audits in financial institutions.

The functional specifications state:

• the scope of the work carried out by the internal audit department
• the basis of the rights and obligations of the internal audit department and the chief auditor
• special auditing tasks and reports
  
  

The functional specifications are laid down in the executive order and has been decided by the Board of Directors of Danske Bank and the Group Chief Auditor.

The audit agreement is an agreement between the external auditors and the chief auditor and must give a description of the audit tasks to be carried out and the distribution of these tasks between the external auditors and the internal audit department.

The audit agreement must also set forth guidelines for the co-operation between the external auditors and the internal audit department and for the work to be carried out by the external auditors in relation to the verification of work performed by the internal audit department.



Last updated on May 5, 2008