Shareholders' Letter

3.9.4 Internal auditing
Alongside risk management and legal compliance management, internal auditing is an essential
part of the Swisscom Group’s corporate governance and is the responsibility of Group Internal
Audit. Group Internal Audit supports the Swisscom Ltd Board of Directors and the Audit Committee
in complying with statutory and regulatory supervisory and controlling obligations. Management
is shown potential areas where business processes can be improved.
Group Internal Audit is responsible for planning and performing audits throughout the Group in
compliance with the guidelines for the profession. In particular, Group Internal Audit performs
independent and objective audits and assessments to verify the efficiency, compliance and effectiveness
of the internal control system, legal compliance management and risk management. The
audit findings are documented, and any measures implemented are monitored.
With a view to achieving maximum independence, Group Internal Audit is under the control of
the Chairman of the Board of Directors and not management, and reports to the Audit Committee
of Swisscom Ltd. The Audit Committee is briefed on the audit findings and the status of corrective
measures at its meetings. In addition to ordinary reporting, Group Internal Audit informs the Audit
Committee of any irregularities which come to its attention.
Group Internal Audit liaises closely and exchanges information with the external auditors. Audit
planning, in particular, is closely coordinated with the external auditors. The integrated strategic
audit, which includes the annual plan of both the internal and the external auditors, is prepared
annually based on a risk analysis and presented to the Audit Committee for approval. Apart from
this, special audits can be commissioned which can also be ordered based on information on the
whistle-blowing platform operated by Group Internal Audit.