Internal audit

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 and investigates all reports of suspected incidents. The latter can be made in person or through a confidential e-mail reporting channel (Whistleblower channel). In 2017, there were nine (9) reports of suspected misconduct via the Whistleblower channel; these cases did not have a material impact on the Group's financial results.

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 unit leads and operative management. Finding remediation follow-ups are coordinated by Internal Audit and Business Compliance Team. Remediated findings are verified by Internal Audit in separate re-audits.

In 2017, the Internal Audit Team conducted 38 planned audits according to an approved annual audit plan. In 15 full audits, the Internal Audit Team covered 122 key and operational controls with wide sample sizes, and in 23 walkthrough audits, the internal auditor covered 35 key controls with limited sample sizes. The annual plan covered 18 legacy MHPS entities and 20 legacy Konecranes 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.