Internal audit

Kesko Group's internal audit is responsible for the Group's independent evaluation and assurance function required of a listed company, which systematically examines and verifies the efficiency of risk management, control, management and governance. The Audit Committee of Kesko's Board of Directors has confirmed Kesko's internal audit's operating instructions.

The internal audit is organised under Kesko's President and CEO and the Audit Committee, and it reports on its findings and recommendations to the Audit Committee, the President and CEO, the management of the audited operation, and the Auditor. The function covers all of Kesko's divisions, companies and functions. Auditing is based on risk analyses, as well as risk management and control discussions conducted with the Group's and divisions' managements. Meetings with the Auditor are arranged on a regular basis in order to ensure sufficient audit coverage and eliminate overlapping operations.

An internal audit plan, subject to approval by the President and CEO and the Audit Committee, is prepared annually. The audit plan is modified on a risk basis, if necessary. As necessary, the internal audit function purchases external services for added resources or for the purpose of conducting audit operations which require special expertise. Audits can also make use of the expertise and work contribution of Kesko Group's other specialists.

Internal audit operations in 2016
The key focus areas of the internal audit operations in 2016 were the progress of Kesko's strategy implementation, the completed acquisitions, quality programmes, the Russian business operations and related risk, efficiency of data security as well as data protection matters.

Focus areas of internal audit in 2017
The key focus areas of internal audit operations in 2017 will be the implementation of Kesko's strategies, the ongoing significant projects, as well as data security and data protection matters.

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