Internal audit

Internal Audit is a function, independent of business operations, which evaluates the efficiency and effectiveness as well as the maturity of the internal control system within Sampo Group. Internal audit strengthens the organisation’s ability to create, protect and sustain value by providing the Board of Directors and Management with independent, risk-based, and objective assurance, advice, insight and foresight.

The Group function is organised under the Board of Directors of Sampo plc, and it reports directly to Sampo plc’s Board and Audit Committee. It is managed by the Group Chief Audit Executive, who is appointed by the Board of Directors of Sampo plc.

Internal audit functions are established in each subgroup and legal entities as regulations demand and approved by the respective Board of Directors or equivalent. Internal Audit carries out internal audit activities annually both for Sampo plc and the Sampo Group regulated companies.

The work is carried out in accordance with the Sampo Group Internal Audit Policy, approved by the Board of Directors of Sampo plc and each Group company. According to the Policy, the Internal Audit function adheres to the mandatory guidance in the Global Internal Audit Standards of the Institute of Internal Auditors.

The Internal Audit establishes an internal audit plan for the regulated companies. The plan is established annually and approved by the Board of Directors in the respective legal entity. The plans of the subgroups are presented for Sampo plc’s Audit Committee’s information. The approach is risk based considering relevant focus areas. The External Audit is informed about the internal audit plans.

The Internal Audit function reports on the audits and follow-up activities performed to the Board of Directors of the legal entities, and to Sampo plc’s Audit Committee. Company-specific audit observations are reported to the respective companies’ management. Furthermore, the function submits status reports to Sampo plc’s Audit Committee and the Board of Directors in all regulated entities at least twice a year. These reports include any significant deficiencies detected, including follow-up issues related to the risks not been mitigated or remedied according to the agreed action plans. In addition, an annual internal audit report is issued for the regulated entities and for the Sampo Group.

The Group Chief Audit Executive is responsible for ensuring that a quality assurance and improvement programme is established in the internal audit functions. The results are reported to Sampo plc’s Audit Committee.