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. During 2018 the responsibility for internal investigations was moved from internal audit to the Head of Compliance and Ethics. In 2018 the Company also launched an additional method for reporting suspect misconducts by launching an externally hosted Whistleblowing channel.
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 subsidiary’s Chairman of the Board (internal Board) and relevant GXB members. Remediation follow-ups are coordinated by Internal Audit and Group Internal Controls Team. Remediated findings are verified by Internal Audit in separate re-audits.
In 2018, the Internal Audit Team conducted 48 planned audits according to an approved annual audit plan. In 10 full audits, the Internal Audit Team covered 107 key and operational controls with wide sample sizes, and in 38 walkthrough audits, the internal auditor covered 35 key controls with limited sample sizes. The annual plan covered 54 active legal entities.
All Internal Audit activities are reported to the Group Executive Board and the Board’s Audit Committee on a regular basis. Internal Audit is responsible to the Audit Committee.