The Norwegian Code of Practice for Corporate Governance - Statoil

The knowledge and experience of the auditor is of particular value to theboard of directors when it considers the company’s annual accounts. Theannual accounts are the responsibility of the board and the chief executive,and making active use of the auditor when considering the accounts willimprove the basis for the board’s decision.In view of the auditor’s independence of the company’s executivemanagement, the board of directors should hold at least one meeting a yearThe auditor is elected by the general meeting, cf. Asal. § 7-1. The auditor elected mustserve until another auditor has been elected, cf. Asal. § 7-2. The auditor must attend thegeneral meeting if the business which is to be transacted is of such a nature that his orher attendance must be regarded as necessary, cf. Asal. § 7-5. The auditor is, in any case,entitled to participate in the general meeting.The Auditing and Auditors Act (Revisorloven), Chapter 4, sets out requirements for theindependence and objectivity of the auditor.The Auditing and Auditors Act stipulates at § 5a-3 that the auditor must provide a report tothe audit committee on the main features of the audit carried out in respect of the previousaccounting year, including particular mention of any material weaknesses identified ininternal control relating to the financial reporting process. The auditor must also providethe audit committee with: 1. Annual written confirmation of the auditor's independence,2. Information on services other than statutory audit provided to the company during thecourse of the financial year, 3. Information on any threats to the auditor's independence,and documentary evidence of the measures implemented to combat such threats. Theinformation mentioned must be provided to the board of directors if the board as a wholecarries out the duties of the audit committee pursuant to the relevant statutory exemption.Auditors are required to identify any errors or shortcomings in respect of the company’saccounting and the management of its assets by means of an itemised letter addressed tothe chair of the company’s board of directors, cf. Revisorloven § 5-4.The Financial Supervisory Authority of Norway (Finanstilsynet) has issued guidelinesfor auditors’ provision of advisory services to audit clients, cf. Finanstilsynet Circular No.23/2003.The remuneration paid to the auditor must be approved by the general meeting, cf.Asal. § 7-1. Regnskapsloven § 7-31a requires that the notes to the annual accountsprovide information on the remuneration paid to the auditor and a breakdown of thisremuneration between the audit fee and fees for other services.Asal. § 7-4 stipulates that the audit report must be provided to the board of directors nolater than 22 days before the general meeting.60 CORPORATE GOVERNANCE