Notice On The Implementation Of Financial Services Companies And Financial Groups, Etc.

Original Language Title: Bekendtgørelse om revisionens gennemførelse i finansielle virksomheder m.v. samt finansielle koncerner

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now

Read the untranslated law here: https://www.retsinformation.dk/Forms/R0710.aspx?id=128802

Overview (table of contents) Chapter 1 scope

Chapter 2 The external audit

Chapter 3 the internal audit

Chapter 4 the audit report

Chapter 5 common provisions

Chapter 6 special provisions for financial institutions

Chapter 7 special rules for mortgage lenders

Chapter 8 special provisions for insurance companies

Chapter 9 special rules for stockbroking firms and investment firms

Chapter 10 special provisions for investment firms and specialty associations, as well as fåmandsforeninger and hedge funds

Chapter 11-special provisions for securities traders

Chapter 12 Criminal provisions and entry into force

Annex 1

Annex 2

Annex 3 The full text of the ordonnance on audits in financial firms, etc., as well as financial koncerner1)

Under section 199, paragraph 11, and § 373, paragraph 4, of the financial business Act, see. lovbekendtgørelse nr. 793 of 20. August 2009, section 71, paragraph 10, section 113, section 114 (f) and section 132 (3) of the Act on investment associations and special associations and other collective investment schemes, etc., see. lovbekendtgørelse nr. 807 of 21. August 2009 and § 5 (2) and section 14, paragraph 2, of the law on a ship's financial regulation. lovbekendtgørelse nr. 1376 of 10. December 2007 shall be determined:

Chapter 1

The scope of the

§ 1. This Ordinance shall apply to financial companies, see. § 5 (1) (8). 1, in the financial business Act, and mutual funds, special funds, and hedge funds, see fåmandsforeninger. section 4, paragraph 1, article 5, paragraph 1, section 111 and section 114 a, paragraph 1 and paragraph 2, of the Act on investment associations and special associations and other collective investment schemes, etc., as well as Danish ship credit a/s.

(2). The notice also applies to both groups as a whole, see. § 5 (1) (8). 9, in the financial business act as on individual companies in groups, where the parent undertaking is a financial holding company or a financial company, see. § 5 (1) (8). 10 of the law on financial business.

General conditions

§ 2. Declarations and information under this Ordinance shall, if they are made without qualification, be reproduced verbatim, without prejudice. Annex 1. Statements and information which cannot be delivered verbatim, shall be referred to and are listed separately.

(2). Affirmations after this notice must be reproduced verbatim, without prejudice. Annex 1. If the acknowledgment messages can not be reproduced verbatim, they are referred to and are listed separately.

(3). Declarations, information and confirmations provided with supplementary information, shall be referred to and are listed separately.

Chapter 2

The external audit

§ 3. The external audit shall review the annual report including the consolidated financial statements in accordance with good auditor usage and check to see if these are carried out in accordance with legislation and other provisions, if any, requirements for financial reporting.

The external audit Protocol

§ 4. For use by the Board of Directors of undertakings established in Denmark, the external audit conduct an audit Protocol. To be in the Protocol sets out the audit carried out during the year, which can form the basis of audit partial conclusions. The Protocol must be presented at any Board meeting, and any protocol injection must be signed by the entire Board of Directors and audit manager.

(2). In the minutes concerning the annual report should set out the review as well as the conclusion of this.

(3). The external audit shall be in a separate section in the minutes concerning the annual report provide information on non-corrected error. The information must be given per error stating amount and effect on accounting entries. There shall in addition be informed about the total effect on the result, assets, liabilities and equity. Not corrected error under de minimis may be omitted from the triviality limit used and the net effect of the total not adjusted error under de minimis. If all bugs are fixed, or that no errors are found during the audit, this must also be provided.

(4). In a separate section in the minutes concerning the annual report, the external review summarize all comments, as the review has given rise to carry over to the Board of Directors. The summary must contain a balance sheet relating to the comments that have been raised relating to the financial year in question, as well as the status relating to the comments that emerged in the hearing concerning the sweet open as previous annual report, see. Annex 2. If the audit did not give rise to observations, should be disclosed.

(5). In a separate section in the minutes concerning the annual report should summarize all of the injunction, the external auditor as the financial supervisory authority has issued during the financial year. The auditor must be in the same section summarize the injunction, which the FSA has issued in the previous fiscal year, but that has not yet been complied with at the end time. In addition, the auditor to inform about the injunction, which is respected in the financial year with the auditor's position on compliance with the injunction. If no one has cast injunctive relief in the fiscal year, and all orders are complied with at the end of the previous fiscal year, this must also be provided.

(6). In a separate section in the minutes concerning the annual report should summarize all the external auditor denounces and risk information, which the FSA has issued during the financial year.

(7). The external audit shall be in a separate section in the minutes concerning the annual report provide information on the execution of any assistance or advisory role.

(8). The external audit shall in connection with information on any assistance or advisory tasks, at least in the minutes concerning the annual report, confirm that the ban on self-review in article 24, paragraph 4, 1. section of the Act on approved Auditors and audit firms have been complied with, including the auditor should not carry out tasks pursuant to section 1, paragraph 2, which relates to a company incorporated under the section 21, paragraph 3, in the case of self-review or self-interest. The confirmation must be placed, even if there have not been carried out assistance or advisory role.

Information

§ 5. It must be in the minutes concerning the annual report be disclosed about

1 financial company) guidelines under section 77, paragraph 4, of the financial business act or the Association's guidelines under section 34 (4) of the Act on investment associations and special associations and other collective investment schemes, etc. are deemed to be reassuring and have functioned appropriately without prejudice. section 77, paragraph 5, of the financial business Act and section 34, paragraph 5, of the Act on investment associations and special associations and other collective investment schemes, etc.,

2) control under section 77, paragraph 5, of the financial business Act and section 34, paragraph 5, of the Act on investment associations and special associations and other collective investment schemes, etc. have given rise to comments,

3) established business practices in order to comply with the provision in section 182 of the financial business Act, and

4) which has been found significant errors or omissions in connection with the review of transactions between the company and the companies included in the scope of section 2 of the Ordinance on intragroup transactions, see. § 6, nr. 3, and give a detailed description of the transactions, which are essential or unusual nature.

(2). In companies that have internal audit, the audit of the hearing concerning the annual report be disclosed about

1) according to the audit Agreement agreed tasks are completed, as well as whether the effective functioning of internal audit, and including to the external audit have not been aware of the circumstances which, individually or together, has been denied that the internal audit function operates independently of the day-to-day management, and

2) external audit is in agreement with the contents of all the internal audit Protocol inputs relating to the financial year, and if this is not the case, in which disagreement remain.

(3). In the minutes relating to the annual report of the parent companies need significant comments on the accounting and auditing conditions in the individual subsidiaries referred to.

(4). A copy of the minutes regarding the annual report of the company shall be submitted to the Danish financial supervisory authority together with a copy of the annual report approved by the Board of Directors and the Board of Directors approved the consolidated financial statements. Corresponding submitted a copy of the minutes for the subsidiaries with registered office in Denmark.

Declarations

§ 6. In the minutes relating to the annual report to be released the following statement:

1) whether or not the company's administrative and accounting practice in essential areas, including business processes and internal control mechanisms, is organized and operates with integrity. In this connection, the external auditor also state whether

a) company's total system, data, and operational safety are and work with integrity,

(b)) who in the company transferred control of the company's holdings of securities and the like,

(c)) the posting is organised in such a way that it can serve as a basis for reports to be made to the FSA, and

d) external audit has been aware of facts which run counter to the requirements of legislation on financial firms and associations.


2) whether the Board of Directors of allocated exposures to and received guarantees from Board members or directors, as well as companies in which these are directors or members of the Board of Directors, has been granted in accordance with the company's usual business conditions and on market-based terms, see. section 78 (2) of the financial business Act.

3) whether or not the financial entity has involvement with companies covered by section 80 (1) and (2) of the financial business Act, see. section 80, paragraph 8, 2. point, in the financial business Act.

Other provisions

§ 7. § 4, paragraph 8, section 5, paragraph 1, and section 6, nr. 1 (c) and (d), and nr. 2-3, does not apply to audit minutes for subsidiaries that are not financial institutions, see. section 1, paragraph 1.

§ 8. If the company has an internal audit, which comply with the provisions of Chapter 3, the external audit agreement with the Audit Manager, to the statements in accordance with § § 23-24 and 26, § 28, nr. 1, §§ 30-32 and 37, only emerges from the internal audit Protocol. The agreement to that effect should be included in the audit agreement without prejudice. § 15.

Chapter 3

The internal audit

§ 9. The Board may provide for the establishment of an internal audit, see. However, paragraph 3. If no one has created an internal audit, the Board of Directors at least once a year to discuss the need to create an internal audit, taking into account the complexity of the company, including whether the company outsources and insourcer activities. The Board's decision must be made by the Board of Directors ' minute book.

(2). If a Board of Directors in accordance with paragraph 1 provides for the establishment of an internal audit, the provisions concerning the internal audit application.

(3). In companies that in the last two financial years at the balance sheet date in the average has had 125 or more full-time employees, the establishment of an internal audit.

(4). For corporations, paragraphs 1 and 3 apply mutatis mutandis.

(5). The provisions in paragraphs 3-4 shall not apply to investment funds, specialist associations, fåmandsforeninger, hedge funds and Danish ship credit a/s.

§ 10. The internal audit function is headed by a head of audit. The recruitment and dismissal of Auditors Chief can only be carried out by the Board of Directors. Appointment and dismissal of the head of the audit may be carried out for the group as a whole.

(2). Audit Manager should have a theoretical training equivalent to what is required to become a chartered or certified accountant.

(3). Audit Manager should know recruitment have attended practical audit work for at least three years within the last 5 years.

(4). The Danish financial supervisory authority may in exceptional cases derogate from the requirements of paragraphs 2 to 3.

(5). The Board of Directors may appoint one or more Deputy Auditors managers.

(6). The Board of Directors may appoint a Deputy head, who is deputising for auditors audit the boss.

(7). The provisions of paragraphs 1 to 4, article 11, paragraphs 1 to 3, and article 12 relating to the audit manager shall apply mutatis mutandis to the Deputy Heads of audit, including delegates.

§ 11. When an audit Chief joins, this must be reported to the FSA within 1 month after accession.

(2). The Board shall, when reporting to the FSA about the recruitment of Audit Manager, see. paragraph 1, submit a declaration to the effect that the audit manager meets the requirements under section 10, paragraphs 2 and 3.

(3). When an audit Chief dismissed or resigns, the Board of Directors and Auditors the Chief not later than 1 month after the termination of employment to send every report to the FSA about his background.

(4). In connection with the statement required in paragraph 2 shall notify the Board of Directors, audit manager shall endorse the annual report under section 19.

(5). The Board of Directors shall be by amending the decision on whether or not the audit manager shall endorse the annual report, inform the Danish financial supervisory authority on the subject.

(6). The Board shall by decision to shut down the internal audit function to inform the Danish financial supervisory authority on the subject.

§ 12. Audit Manager should have access to all information, as this consider necessary for audits, including Board Protocol.

(2). Audit Manager and staff in the internal audit shall not engage in other work within the company or group than revision.

(3). Internal audit must not assume tasks when there are circumstances which are apt to arouse doubts with an informed third party about the internal audit independence.

§ 13. Audit and deputy heads must, see audit. section 77, paragraph 10, of the financial business Act, does not have financial interests in the company or group of companies, as they are employed in.

§ 14. In firms respectively groups which have an internal audit, must be the subject of a functional description, approved by the Board of Directors. Functional description can be drawn up for the group as a whole and be accepted by the individual group companies ' boards. Functional description should, as a minimum, contain provisions concerning

1) the internal audit General powers, responsibilities and duties,

2) qualifications,

3) how and the extent to which audit manager and the employees of the internal audit is ensured ongoing training,

4) that the recruitment and dismissal of employees of the internal audit shall be made or approved by the head of audit, and that employees ' training must be approved by the Audit Manager,

5) the internal audit budget, and that this shall be approved by the Board of Directors, which shall be set out in a Board minutes, and

6) information about agreements between the company management and the internal audit function to perform specific audit tasks. One-time tasks and duties of a temporary nature only need to be set out in the internal audit Protocol.

(2). The internal audit function should only take on work tasks, see. (1). 1, as it has sufficient competence to perform.

(3). In paragraph 1, no. 6, mentioned tasks must not be used to audit the boss gets into a situation where he or she declares herself or inform you of facts or documents, as the audit manager or the employees of the internal audit function has prepared the basis for.

§ 15. In firms respectively groups which have an internal audit, the audit work carried out in accordance with good audit practice and pursuant to an agreement between the external auditors review and audit manager. Auditors agreement can be drawn up for the group as a whole. The audit agreement shall contain

1) an overall description of the audit tasks to be performed, and which of these tasks incumbent upon, respectively the external audit and internal audit,

2) guidelines for cooperation between the external audit and the internal audit function, including the work of the external audit shall perform in connection with the control of the internal audit work, and

3) a description of how and to what extent, the exchange of information between the internal and external auditing of the performed audit.

(2). If the audit manager shall endorse the annual report referred to in article 6. § 11 (4) and section 19, paragraph 2, it shall be recorded in the audit agreement, to audit the Chief participant in the review of the essential and risky areas. With participation means that the audit manager in these areas performs part of the work in companies where the boss do not transfer their endorsement on annual report auditing, alone would be performed by the external audit.

§ 16. In companies that have an audit manager, should this also be audit manager in all the establishments covered by article 1, paragraph 2, that is. whether a financial company or not.

(2). Paragraph 1 shall not apply in cases where the company operated temporarily with a view to the liquidation of prior underwriting exposures or with regard to participation in the restructuring of businesses.

The internal audit Protocol

§ 17. For use by the Board of Directors of undertakings established in Denmark, the internal audit shall conduct an audit Protocol. To be in the Protocol sets out the audit carried out during the year, which can form the basis of audit partial conclusions. The Protocol must be presented at any Board meeting, and any protocol injection must be signed by the entire Board of Directors.

(2). Audit Manager should provide internal audit minutes relating to the annual report, audit plan and budget of the internal audit function on the relevant Board meetings.

(3). In the internal audit concerning the annual report must explain the minutes the performed auditing, including how the internal audit has participated in the review of the essential and risky areas, as well as the conclusion of this. In a separate section in the minutes relating to the internal audit annual report summarizing all comments, as the review has given rise to carry over to the Board of Directors. The summary must contain a balance sheet relating to the comments that have been raised relating to the financial year in question, as well as the status relating to the comments that emerged in the hearing concerning the sweet open as previous annual report, see. Annex 2. If the audit did not give rise to observations, should be disclosed.


(4). Audit Manager should, as a minimum, in the minutes concerning the annual report in a separate section, confirm that the audit manager has not come up in a situation where he or she declares herself or inform you of facts or documents, as the audit manager or the employees of the internal audit function has prepared the basis for regulation. § 14 (3).

(5). In the minutes concerning the annual report must indicate whether the internal audit has received all the information that is requested.

(6). § 5 (3) and (4) and section 7 shall apply mutatis mutandis to the internal audit minutes relating to the annual report.

Chapter 4

The audit report

§ 18. The external auditors ' report on the annual report, including the consolidated financial statements and the annual report of the subsidiaries, shall be submitted in accordance with the provisions of the law on the approved Auditors and audit firms, as well as the regulations issued thereunder.

(2). The requirement for endorsement of the subsidiaries ' annual reports only applies if the financial company external audit has been in charge of the review.

§ 19. Audit Manager should issue an endorsement on the annual report, including the consolidated financial statements and the annual report of the subsidiaries with registered office in Denmark, if this is selected in accordance with article 11, paragraph 4, of the basic regulation. However, section 16, paragraph 2.

(2). Audit Manager's endorsement means that the internal audit is carried out in accordance with audit agreement without prejudice. § 15.

(3). Such endorsement shall contain a short description of the performed auditing, including the internal audit has participated in the review of the essential and risky areas, as well as conclusion of this. It must be stated separately, if the review includes other than the annual report. Any reservations or additional information must clearly be indicated in the endorsement.

Chapter 5

Common provisions

§ 20. A financial company or an entity within the same group may not grant commitment to or receive collateral from the external audit, the audit manager or Deputy Audit Manager. However, this does not apply to loans granted by a life assurance company in the field of genkøbsværdien of one of the life assurance company issued insurance policy.

§ 21. If the external review or internal audit must assume that a financial company does not meet or in the foreseeable future will not be able to meet the requirements for solvency regulation. § § 124-126, of the law on financial business, or capital requirements in § 4, paragraph 7, § 5, paragraph 7, section 9, nr. 3 and 4, § 111 paragraph 6 and section 114a, paragraph 6, of the Act on investment associations and special associations and other collective investment schemes, etc., that person must immediately notify the FSA this.

§ 22. By submission of declarations and information, see. sections 5-6, 23-24, 26, 28-32 and 35-37, it should be assessed, which of these is appropriate for that company. If a piece of information or a statement not to be provided in relation to an undertaking, must be justified in the hearing.

Chapter 6

Special provisions for financial institutions

§ 23. It should be in the external audit minutes relating to the annual report and consolidated financial statements disclosed, about

1) money the institution's measurement of loans and guarantees are carried out in accordance with the rules thereof, and

2) the Bank may calculate the individual contributor and investors covered assets.

§ 24. The external audit in the minutes relating to the annual report of the Bank drawn up represent a summary of the following exposures from the application of the basic regulation. However, paragraph 5:

1) Money the Foundation's 10 largest exposures.

2) Other exposures that exceed 10 percent of the basic capital is calculated according to the rules in section 145 of the financial business Act.

3) Other significant exposures, provided these after money the institution's and/or auditor's assessment gives rise to the comments of the Board of Directors.

(2). The statement referred to in paragraph 1 shall, for each exposure shall contain information about the

1) exposure size,

2) any communication planned framework for forward transactions and other transactions with derivative financial instruments,

3) inlaid certainties and their estimated value,

4) whether made to individual impairment on the exposure,

5) whether in the financial year or the preceding two fiscal years have been amortized or depreciated on exposures,

6) the debtor's financial situation, and

7) management's assessment of the risk of exposure, taking account of all available facts, including whether the management considers the exposure for correctly measured.

(3). The external audit in the minutes relating to the annual report of extension of management's assessment of the individual commitment

1) indicate the auditor's overall assessment of the risk to each engagement, taking account of all available facts, and

2) declare whether or not the individual exposures covered by paragraph 1, is measured correctly.

(4). In groups, see. section 1, paragraph 2, the summary and the information referred to in paragraphs 1-2 as well as auditor's declarations in accordance with paragraph 3 also is provided on a group basis.

(5). The statement referred to in paragraph 1 shall only include exposures to mortgage companies as well as domestic and foreign banks, if special circumstances so dictate.

Chapter 7

Special provisions for mortgage companies

§ 25. The internal audit shall review

1) new mortgage without State guarantees, in accordance with the Board's instructions to the Executive Board to be granted by the Board of Directors,

2) conversions of loans that exceed EUR 10 million. DKK, and

3) other loan cases.

(2). The review of loan cases see. (1). 1-3, must be done partly through an examination of the loan cases where mortgage lending value or the Department's pre-requisites attracting particular interest, in the light of market conditions in the area in question for the General properties of the species concerned, partly by random, representative sample in the paragraph 1 groups.

(3). The audit agreement must contain detailed guidelines for the monitoring referred to in paragraph 1 as well as for reporting of the results thereof to the Board and management. Reporting to the Board of Directors must, among other things. include an explanation of the sample selection and conclusion on lånesagsgennemgangen as well as a separate exposition of the loan cases where the audit has found that the mortgage lending value should have been smaller. Reporting is given in the hearing concerning the annual report or sent to the FSA in copy.

(4). In mortgage credit institutions without internal audit is the responsibility of the tasks under paragraph 1-3 the external audit.

section 26. It should be in the external audit minutes relating to the annual report and consolidated financial statements disclosed, about

1) mortgage institution's measurement of lending, including the adjustment of value that takes place as a result of the credit risk, is carried out in accordance with the rules thereof,

2) mortgage Institute provides mortgage loans on the basis of anything other than the issuance of mortgage bonds, covered bonds, covered bonds and other securities, jf. section 1, paragraph 1, of the law on mortgages and mortgage bonds, etc.,

3) mortgage institution using funds obtained by issuing securities to lending and whether it places excess funds from block emission in accordance with section 20 of the law on mortgages and mortgage bonds, etc.,

4) mortgage Institute keeps series reservefondens ' funds separately from the other funds in the Foundation, see. § 26 paragraph 1 of the law on mortgages and mortgage bonds, etc., and

5) mortgage Department can calculate the individual contributor and investors covered assets.

Chapter 8

Specific rules for insurance companies

§ 27. When subsequently used the concepts of insurance company or life insurance company includes these also lateral pension funds.

section 28. It should be in the external audit minutes relating to the annual report and consolidated financial statements disclosed, about

1) there is a good reason to believe that the technical provisions are calculated in such a way that, taking into account what is reasonably foreseeable, sufficient to cover all the company's insurance liabilities at the balance sheet date, but at the same time is not greater than necessary, and

2) insurance undertaking complies with the requirements for legislation, investment regulations, including information about any comments made after notice of the registration of assets in insurance companies, etc.

section 29. The external audit in the minutes relating to the annual report on the State of the Danish financial supervisory authority reported inventories of capital ratios and risks at 31 December 2003. December has been calculated in accordance with the applicable guidelines, see. Guidance for reporting forms for disclosure of capital and risks in life, non-life and reinsurance companies, and occupational pension funds cross-cutting companies.

Chapter 9

Special rules for stockbroking firms and investment firms

section 30. The external audit in the minutes relating to the annual report of the stockbroking companies state whether

1) stockbroking company, if it has a minimum capital requirement of 0.3 mio. euro, see. § 125 (2) nr. 4, in the financial business Act and provides services with derivatives contracts, uncovers the derivative contracts with other securities dealer,


2) stockbroking company's activities are in line with the company's permission to operate the stockbroking company, see. Annex 4 of the financial business Act, and of the EVS. ownership of shares is in accordance with § 26 (1) of the financial business Act, and

3) stockbroking company can calculate the individual contributor and investors covered assets.

(2). Paragraph 1 shall apply mutatis mutandis to investment management companies, which are allowed under section 10, paragraph 2, of the basic regulation. § 9 (1) of the financial business Act.

Chapter 10

Special provisions for investment firms and specialty associations, as well as fåmandsforeninger and hedge funds

section 31. It should be in the external audit minutes relating to the annual report of the investment funds and specialist associations as well as fåmandsforeninger reported on

1) calculations of emissions-and the redemption price shall be made in accordance with it under section 48, paragraph 5, and section 113 of the Act on investment associations and special associations and other collective investment schemes, etc., issued Executive order,

2) placement rules, see. Chapter 13-14 for mutual funds, see. Chapter 15 for special associations and section 113 of the fåmandsforeninger of the law on investment funds and specialist associations and other collective investment schemes, etc., are complied with, and

3) Association or a Department has been or is under the law's minimum requirements for assets size, see. § 4, paragraph 7, § 5, paragraph 7, and section 111, paragraph 6, of the Act on investment associations and special associations and other collective investment schemes, etc.

section 32. It should be in the external audit minutes relating to the annual report of the hedge funds, which are covered by section 114 a, paragraph 1 or paragraph 2, of the Act on investment associations and special associations and other collective investment funds, etc. be disclosed about

1) calculations of emissions-and the redemption price shall be made in accordance with in the under section 48, paragraph 5, and section 114 (f), of the Act on investment associations and special associations and other collective investment schemes, etc., issued the Executive order, and

2) Association or a Department has been or is under the law's minimum requirements for assets size, see. section 114 a, paragraph 6, of the Act on investment associations and special associations and other collective investment funds, etc.

section 33. In the minutes relating to the annual report of the investment funds and specialist associations as well as fåmandsforeninger and hedge funds should not be provided for in § 6, nr. 2 and 3, referred to statements.

Chapter 11

Special provisions for securities traders

§ 34. Securities dealers are financial institutions, mortgage companies, stock brokerage firms and investment management companies which are authorized as a securities dealer under section 9 (1) of the financial business Act, as well as branches in this country by credit institutions, investment firms and management companies authorised to provide investment services in a country outside the European Union, which the community has not concluded an agreement with in the financial sphere, and which carry out such activity here in the country , hereinafter referred to as securities traders.

section 35. The internal audit is required to prepare and implement an audit plan to investigate and evaluate whether securities handler systems, internal control mechanisms and arrangements are appropriate and effective.

(2). The internal audit as part of the performance of work referred to in paragraph 1, the operations review the reporting to the Board of Directors of the compliance function and the risk management function, see. section 6 of the Executive order on the organisational requirements and the conditions for the operation of the company as a securities dealer. Internal audit must, as a minimum, the agreed minute concerning the annual report of the Court of Auditors report on the comments on audit relationship, as the review gives rise to, indicating that adequate arrangements have been made in case of any shortcomings. If the review does not give rise to observations, this must also be reflected in the minutes.

§ 36. If no one has created an internal audit, external audit review reporting to the Board of Directors of the compliance function and the risk management function, see. section 6 of the Executive order on the organisational requirements and the conditions for the operation of the company as a securities dealer. The external audit must, as a minimum, the agreed minute concerning the annual report of the Court of Auditors report on the comments on audit relationship, as the review gives rise to, indicating that adequate arrangements have been made in case of any shortcomings. If the review does not give rise to observations, this must also be reflected in the minutes.

section 37. It should be in the external audit minutes relating to the annual report and consolidated financial statements disclosed, about security handler comply with the provisions of § 72, paragraphs 1 to 3, of the law on financial activities including the external audit have not been aware of facts which run counter to the requirements of the Executive order on the organisational requirements and the conditions for the operation of the company as a securities dealer.

Chapter 12

Penal provisions and entry into force

section 38. Violation of sections 2-6, § 8, 2. paragraph, section 9 (1), 2-3. paragraphs, and paragraphs 2-3, article 10, paragraph 1 1. and 2. paragraphs, and paragraphs 2-3, and 7, §§ 11-15, section 16, paragraph 1, article 17, article 18, paragraph 1, article 19, paragraphs 1 and 3, § § 20-26, 28-32 and § § § § 35-37 is punishable by a fine.

(2). That can be imposed on companies, etc. (legal persons) criminal liability in accordance with the provisions of the criminal code 5. Chapter.

§ 39. The notice shall enter into force on the 31st. December 2009 and has effect for minutes of meetings, audit relating to fiscal years beginning on or after 1. January 2009 or later. At the same time repealed Executive Order No. 1304 of 16. December 2008 on the implementation of financial services companies, etc., as well as financial groups.

(2). The provisions of section 10 (2) and (3) shall apply to persons who join the position of Audit Manager, who is deputising for the head or Deputy Head of Auditors Auditors after the 1. January 1999.
The Danish financial supervisory authority, the 11. December 2009 Ulrik Nødgaard/Mads Mathiassen Annex 1

Statements and information contained in the audit of the hearing relating to the annual report

Pursuant to paragraph 2 shall audit confirmations, statements and information are rendered with the wording, which is clear from the following lists, if they are made without reservation.

Declarations and information that cannot be made as set out in this annex, shall be referred to and are listed separately. The shell of these separate declarations and information clearly and clearly why they have not been able to be made in accordance with the wording of this annex.

Attention to it by submitting the following declarations and information must be assessed, which of these, which is relevant for the company. If a piece of information or a statement not to be provided in relation to an undertaking, must be justified in the agreed minute referred to in article 6. revision of the Executive order on section 22.

Next to each of the listed provisions of the Audit Ordinance are listed:




– ' (E) ' for the information/statements to be provided by the external audit,

— ' (In) ' for the information/statements to be made by internal audit,

– ' (E/I) ' for the information/statements that in the light of the review the agreement can be carried out by either external or internal audit, see. revision of the Executive order on section 8.



1. Financial institutions









 

 





Provision of audit notice





Bekræftelsernes wording





 



Pursuant to section 4 of the Executive order on Auditors, paragraph 8, we confirm that:







§ 4, paragraph 8 (E)





We have complied with the prohibition to carry out assistance and advisory tasks, see. Article 24, paragraph 4, 1. paragraph, of the law on the approved Auditors and audit firms, including the





 



-We or other people in the Court undertaking did not take part in posting or similar registrations, which forms the basis of the annual report or other conditions made a statement and we or other people in the audit company has not participated in the drafting of the annual report or other document the Declaration relates.





 



In accordance with paragraph 17 Auditors (4), we confirm that:







section 17, paragraph 4 (I)





We have not come up in a situation where we declare us or inform you of facts or documents we or staff of the internal audit function has prepared the basis for.





 



The wording of the





 



In accordance with paragraph 5 shall we inform Auditors that:








§ 5 (1) (8). 1 (E)





the financial company guidelines concerning the verification of compliance with the prohibition of speculation under section 77, paragraph 4, of the law on financial business is estimated to be reassuring and have functioned appropriately § 5 (1) (8). 2 (E)





control of compliance with speculative prohibition pursuant to section 77, paragraph 5, of the financial business Act did not give rise to observations







§ 5 (1) (8). 3 (E)





established business practices in order to comply with the provision of intra-group exposures in § 182 in the financial business Act § 5 (1) (8). 4 (E)





There have not been found significant errors or omissions in connection with the review of transactions between the company and the companies included in the scope of section 2 of the Ordinance on intragroup transactions







§ 5 (1) (8). 4 (E)





There is given a detailed description of intragroup transactions, which are essential or unusual species on the page ... 1)







§ 5, stk. 2, nr. 1 (E)





According to the audit Agreement agreed tasks, to be performed by internal audit is performed, as well as to the proper functioning of the internal audit function including the external audit have not been aware of the circumstances which, individually or together, has been denied that the internal audit function operates independently of the day-to-day management







section 5, paragraph 2, no. 2 (E)





We agree with the contents of all the internal audit Protocol inputs relating to the financial year





 



According to audit the Executive order on section 17 (5), we must inform you that:







section 17, paragraph 5 (I)





We have received all the information that is requested





 



Pursuant to section 23 of the Executive order on Auditors, we must inform you that:







section 23, no. 1 (E/I)





the Institute's measure of lending money and guarantees are carried out in accordance with the rules







section 23, no. 2 (E/I)





the Bank may calculate the individual contributor and the investor's assets covered





 



The wording of the statements was





 



Pursuant to section 6 of the Executive order on Auditors, we must declare that:







§ 6, nr. 1 (E)





the company's administrative and accounting practice in essential areas, including business processes and internal control mechanisms, is organized and operates with integrity. In this connection, we must also declare that-an organization's entire system, data, and operational safety are and work with integrity,-who in the company transferred control of the company's holdings of securities and the like,-posting is organised in such a way that it can serve as a basis for reports to be made to the FSA, and





 



-We have not been aware of facts which run counter to the requirements of legislation on financial services companies







§ 6, nr. 2 (E)





the Board of Directors of allocated exposures to and received guarantees from Board members or directors, as well as companies in which these are directors or members of the Board of Directors, has been granted in accordance with the company's usual business conditions and on market-based terms, see. section 78, paragraph 2, of the law on financial business







§ 6, nr. 3 (E)





the financial company does not have engagement with businesses owned or operated by the Executive or other senior staff or Executive Board members or other senior staff which in any other way participate in the management or operation of the basic regulation. section 80 (1), (2), and (8) 2. paragraph, of the law on financial business





 



Pursuant to section 24 of the Executive order on Auditors, we must declare that:







Article 24, paragraph 3, nr. 2 (E/I)2)





ovenstående engagement er målt korrekt3)





 

 





2. Mortgage companies





 

 





Provision of audit notice





Bekræftelsernes wording





 



Pursuant to section 4 of the Executive order on Auditors, paragraph 8, we confirm that:







§ 4, paragraph 8 (E)





We have complied with the prohibition to carry out assistance and advisory tasks, see. Article 24, paragraph 4, 1. paragraph, of the law on the approved Auditors and audit firms, including the





 



-We or other people in the Court undertaking did not take part in posting or similar registrations, which forms the basis of the annual report or other conditions made a statement and we or other people in the audit company has not participated in the drafting of the annual report or other document declaration relates





 



In accordance with paragraph 17 Auditors (4), we confirm that:







section 17, paragraph 4 (I)





We have not come up in a situation where we declare us or inform you of facts or documents we or staff of the internal audit function has prepared the basis for.





 



The wording of the





 



In accordance with paragraph 5 shall we inform Auditors that:







§ 5 (1) (8). 1 (E)





the financial company guidelines concerning the verification of compliance with the prohibition of speculation under section 77, paragraph 4, of the law on financial business is estimated to be reassuring and have functioned appropriately § 5 (1) (8). 2 (E)





control of compliance with speculative prohibition pursuant to section 77, paragraph 5, of the financial business Act did not give rise to observations







§ 5 (1) (8). 3 (E)





established business practices in order to comply with the provision of intra-group exposures in § 182 in the financial business Act § 5 (1) (8). 4 (E)





There have not been found significant errors or omissions in connection with the review of transactions between the company and the companies included in the scope of section 2 of the Ordinance on intragroup transactions







§ 5 (1) (8). 4 (E)






There is given a detailed description of intragroup transactions, which are essential or unusual species on the page ... 4)







§ 5, stk. 2, nr. 1 (E)





According to the audit Agreement agreed tasks, to be performed by internal audit is performed, as well as to the proper functioning of the internal audit function including the external audit have not been aware of the circumstances which, individually or together, has been denied that the internal audit function operates independently of the day-to-day management







section 5, paragraph 2, no. 2 (E)





We agree with the contents of all the internal audit Protocol inputs relating to the financial year





 



According to audit the Executive order on section 17 (5), we must inform you that:







section 17, paragraph 5 (I)





We have received all the information that is requested





 



Pursuant to section 26 of the Executive order on Auditors, we must inform you that:







section 26, no. 1 (E/I)





mortgage credit institution's measurement of lending, including the adjustment of the measurement that takes place as a result of the credit risk, is carried out in accordance with the rules







section 26, no. 2 (E/I)





mortgage Foundation does not offer mortgages on the basis of anything other than the issuance of mortgage bonds, covered bonds, covered bonds and other securities, jf. section 1, paragraph 1 of the law on mortgages and mortgage bonds, etc.







section 26, no. 3 (E/I)





mortgage credit Institute will not use funds obtained from securities issuance for purposes other than lending section 26, no. 3 (E/I)





mortgage institution shall then allocate excess funds from block emission in accordance with section 20 of the law on mortgages and mortgage bonds, etc.







section 26, no. 4 (E/I)





mortgage Foundation keeps series reservefondens ' funds separately from the other funds in the Foundation, see. section 26, paragraph 1, of the law on mortgages and mortgage bonds, etc.







section 26, no. 5 (E/I)





mortgage Department can calculate the individual contributor and the investor's assets covered





 



The wording of the statements was





 



Pursuant to section 6 of the Executive order on Auditors, we must declare that:







§ 6, nr. 1 (E)





the company's administrative and accounting practice in essential areas, including business processes and internal control mechanisms, is organized and operates with integrity. In this connection, we must also declare that-an organization's entire system, data, and operational safety are and work with integrity,-who in the company transferred control of the company's holdings of securities and the like,-posting is organised in such a way that it can serve as a basis for reports to be made to the FSA, and





 



-We have not been aware of facts which run counter to the requirements of legislation on financial services companies







§ 6, nr. 2 (E)





the Board of Directors of allocated exposures to and received guarantees from Board members or directors, as well as companies in which these are directors or members of the Board of Directors, has been granted in accordance with the company's usual business conditions and on market-based terms, see. section 78, paragraph 2, of the law on financial business







§ 6, nr. 3 (E)





the financial company does not have engagement with businesses owned or operated by the Executive or other senior staff or Executive Board members or other senior staff which in any other way participate in the management or operation of the basic regulation. section 80 (1), (2), and (8) 2. paragraph, of the law on financial business





 

 





3. Insurance companies





 

 





Provision of audit notice





Bekræftelsernes wording





 



Pursuant to section 4 of the Executive order on Auditors, paragraph 8, we confirm that:







§ 4, paragraph 8 (E)





We have complied with the prohibition to carry out assistance and advisory tasks, see. Article 24, paragraph 4, 1. paragraph, of the law on the approved Auditors and audit firms, including the





 



-We or other people in the Court undertaking did not take part in posting or similar registrations, which forms the basis of the annual report or other conditions made statement





 



-We or other people in the audit company has not participated in the drafting of the annual report or other document declaration relates





 



In accordance with paragraph 17 Auditors (4), we confirm that:







section 17, paragraph 4 (I)





We have not come up in a situation where we declare us or inform you of facts or documents we or staff of the internal audit function has prepared the basis for





 



The wording of the





 



In accordance with paragraph 5 shall we inform Auditors that:







§ 5 (1) (8). 1 (E)





the financial company guidelines concerning the verification of compliance with the prohibition of speculation under section 77, paragraph 4, of the law on financial business is estimated to be reassuring and have functioned appropriately § 5 (1) (8). 2 (E)





control of compliance with speculative prohibition pursuant to section 77, paragraph 5, of the financial business Act did not give rise to observations







§ 5 (1) (8). 3 (E)





established business practices in order to comply with the provision of intra-group exposures in § 182 in the financial business Act § 5 (1) (8). 4 (E)





There have not been found significant errors or omissions in connection with the review of transactions between the company and the companies included in the scope of section 2 of the Ordinance on intragroup transactions § 5 (1) (8). 4 (E)





There is given a detailed description of intragroup transactions, which are essential or unusual species on the page ... 5)







§ 5, stk. 2, nr. 1 (E)






According to the audit Agreement agreed tasks, to be performed by internal audit is performed, as well as to the proper functioning of the internal audit function including the external audit have not been aware of the circumstances which, individually or together, has been denied that the internal audit function operates independently of the day-to-day management







section 5, paragraph 2, no. 2 (E)





We agree with the contents of all the internal audit Protocol inputs relating to the financial year





 



According to audit the Executive order on section 17 (5), we must inform you that:







section 17, paragraph 5 (I)





We have received all the information that is requested





 



In accordance with paragraph 28 should we audit disclose that:







section 28, nr. 1 (E/I)





There is good reason to believe that the technical provisions are calculated in such a way that, taking into account what is reasonably foreseeable, sufficient to cover all the company's insurance liabilities at the balance sheet date, but at the same time is not greater than necessary







section 28, nr. 2 (E)





the insurer meets the requirements according to the law of investment rules. There is given the necessary comments in accordance with the Ordinance on the registration of assets in insurance companies, etc. on the page ... 6)





 



Erklæringernes ordlyd





 



Pursuant to section 6 of the Executive order on Auditors, we must declare that:







§ 6, nr. 1 (E)





the company's administrative and accounting practice in essential areas, including business processes and internal control mechanisms, is organized and operates with integrity. In this connection, we must also declare that-an organization's entire system, data, and operational safety are and work with integrity,-who in the company transferred control of the company's holdings of securities and the like,-posting is organised in such a way that it can serve as a basis for reports to be made to the FSA, and





 



-We have not been aware of facts which run counter to the requirements of legislation on financial services companies







§ 6, nr. 2 (E)





the Board of Directors of allocated exposures to and received guarantees from Board members or directors, as well as companies in which these are directors or members of the Board of Directors, has been granted in accordance with the company's usual business conditions and on market-based terms, see. section 78 (2) of the financial business Act § 6, nr. 3 (E)





the financial company does not have engagement with businesses owned or operated by the Executive or other senior staff or Executive Board members or other senior staff which in any other way participate in the management or operation of the basic regulation. section 80 (1), (2), and (8) 2. articles in the financial business Act





 



Pursuant to section 29 of the Executive order on Auditors, we must declare that:







section 29 (E)





the Danish financial supervisory authority reported inventory of capital ratios and risks at 31 December 2003. December has been calculated in accordance with the applicable guidelines, see. guidance for reporting forms for disclosure of capital and risks in life, non-life and reinsurance undertakings, lateral pension funds as well as workers ' compensation companies.





 

 





4. the stockbroking companies





 

 





Provision of audit notice





Bekræftelsernes wording





 



Pursuant to section 4 of the Executive order on Auditors, paragraph 8, we confirm that:







§ 4, paragraph 8 (E)





We have complied with the prohibition to carry out assistance and advisory tasks, see. Article 24, paragraph 4, 1. paragraph, of the law on the approved Auditors and audit firms, including the





 



-We or other people in the Court undertaking did not take part in posting or similar registrations, which forms the basis of the annual report or other conditions made statement-we or other people in the audit company has not participated in the drafting of the annual report or other document declaration relates





 



Pursuant to section 17 of the Executive order on Auditors, paragraph 4, we confirm that:







section 17, paragraph 4 (I)





We have not come up in a situation where we declare us or inform you of facts or documents we or staff of the internal audit function has prepared the basis for





 



Information text





 



In accordance with paragraph 5 shall we inform Auditors that:







§ 5 (1) (8). 1 (E)





the financial company guidelines concerning the verification of compliance with the prohibition of speculation under section 77, paragraph 4, of the law on financial business is estimated to be reassuring and have functioned appropriately § 5 (1) (8). 2 (E)





control of compliance with speculative prohibition pursuant to section 77, paragraph 5, of the financial business Act did not give rise to observations







§ 5 (1) (8). 3 (E)





established business practices in order to comply with the provision of intra-group exposures in § 182 in the financial business Act § 5 (1) (8). 4 (E)





There have not been found significant errors or omissions in connection with the review of transactions between the company and the companies included in the scope of section 2 of the Ordinance on intragroup transactions § 5 (1) (8). 4 (E)





There is given a detailed description of intragroup transactions, which are essential or unusual species on the page ... 7)







§ 5, stk. 2, nr. 1 (E)





According to the audit Agreement agreed tasks, to be performed by internal audit is performed, as well as to the proper functioning of the internal audit function including the external audit have not been aware of the circumstances which, individually or together, has been denied that the internal audit function operates independently of the day-to-day management







section 5, paragraph 2, no. 2 (E)





We agree with the contents of all the internal audit Protocol inputs relating to the financial year





 



According to audit the Executive order on section 17 (5), we must inform you that:







section 17, paragraph 5 (I)






We have received all the information that is requested





 



According to audit the Executive order on section 30, paragraph 1, shall we inform you that:







section 30 (1) (8). 1 (E/I)





stockbroking company, if it has a minimum capital requirement of 0.3 mio. euro, see. § 125 (2) nr. 4, in the financial business Act and provides services with derivatives contracts, uncovers the derivative contracts with other securities dealer







section 30 (1) (8). 2 (E/I)





stockbroking company's activities are in line with the company's permission to operate the stockbroking company, see. Annex 4 of the financial business Act, and possibly. ownership of shares is in accordance with section 26, paragraph 1 of the financial business Act







section 30 (1) (8). 3 (E/I)





stockbroking company can calculate the individual contributor and the investor's assets covered





 



The wording of the statements was





 



Pursuant to section 6 of the Executive order on Auditors, we must declare that:







§ 6, nr. 1 (E)





the company's administrative and accounting practice in essential areas, including business processes and internal control mechanisms, is organized and operates with integrity. In this connection, we must also declare that-an organization's entire system, data, and operational safety are and work with integrity,-who in the company transferred control of the company's holdings of securities and the like,-posting is organised in such a way that it can serve as a basis for reports to be made to the FSA, and





 



-We have not been aware of facts which run counter to the requirements of legislation on financial services companies







§ 6, nr. 2 (E)





the Board of Directors of allocated exposures to and received guarantees from Board members or directors, as well as companies in which these are directors or members of the Board of Directors, has been granted in accordance with the company's usual business conditions and on market-based terms, see. section 78, paragraph 2, of the law on financial business







§ 6, nr. 3 (E)





the financial company does not have engagement with businesses owned or operated by the Executive or other senior staff or Executive Board members or other senior staff which in any other way participate in the management or operation of the basic regulation. section 80 (1), (2), and (8) 2. paragraph, of the law on financial business





 

 





5. Investment management companies, who alone have permission under section 10, paragraph 2, of the law on financial business





 

 





Provision of audit notice





Bekræftelsernes wording





 



Pursuant to section 4 of the Executive order on Auditors, paragraph 8, we confirm that:







§ 4, paragraph 8 (E)





We have complied with the prohibition to carry out assistance and advisory tasks, see. Article 24, paragraph 4, 1. paragraph, of the law on the approved Auditors and audit firms, including at-we or other people in the Court undertaking did not take part in posting or similar registrations, which forms the basis of the annual report or other conditions made statement and





 



-We or other people in the audit company has not participated in the drafting of the annual report or other document declaration relates





 



In accordance with paragraph 17 Auditors (4), we confirm that:







section 17, paragraph 4 (I)





We have not come up in a situation where we declare us or inform you of facts or documents we or staff of the internal audit function has prepared the basis for





 



The wording of the





 



In accordance with paragraph 5 shall we inform Auditors that:







§ 5 (1) (8). 1 (E)





the financial company guidelines concerning the verification of compliance with the prohibition of speculation under section 77, paragraph 4, of the law on financial business is estimated to be reassuring and have functioned appropriately







§ 5 (1) (8). 2 (E)





control of compliance with speculative prohibition pursuant to section 77, paragraph 5, of the financial business Act did not give rise to observations







§ 5 (1) (8). 3 (E)





established business practices in order to comply with the provision of intra-group exposures in § 182 in the financial business Act







§ 5 (1) (8). 4 (E)





There have not been found significant errors or omissions in connection with the review of transactions between the company and the companies included in the scope of section 2 of the Ordinance on intragroup transactions § 5 (1) (8). 4 (E)





There is given a detailed description of intragroup transactions, which are essential or unusual species on the page ... 8)







§ 5, stk. 2, nr. 1 (E)





According to the audit Agreement agreed tasks, to be performed by internal audit is performed, as well as to the proper functioning of the internal audit function including the external audit have not been aware of the circumstances which, individually or together, has been denied that the internal audit function operates independently of the day-to-day management







section 5, paragraph 2, no. 2 (E)





We agree with the contents of all the internal audit Protocol inputs relating to the financial year





 



According to audit the Executive order on section 17 (5), we must inform you that:







section 17, paragraph 5 (I)





We have received all the information that is requested





 



The wording of the statements was





 



Pursuant to section 6 of the Executive order on Auditors, we must declare that:







§ 6, nr. 1 (E)





the company's administrative and accounting practice in essential areas, including business processes and internal control mechanisms, is organized and operates with integrity. In this connection, we must also declare that





 



-an organization's entire system, data, and operational safety are and work with integrity,





 



-in the company transferred control of the company's holdings of securities and the like,





 




-posting is organised in such a way that it can serve as a basis for reports to be made to the FSA, and





 



-We have not been aware of facts which run counter to the requirements of legislation on financial services companies







§ 6, nr. 2 (E)





the Board of Directors of allocated exposures to and received guarantees from Board members or directors, as well as companies in which these are directors or members of the Board of Directors, has been granted in accordance with the company's usual business conditions and on market-based terms, see. section 78, paragraph 2, of the law on financial business







§ 6, nr. 3 (E)





the financial company does not have engagement with businesses owned or operated by the Executive or other senior staff or Executive Board members or other senior staff which in any other way participate in the management or operation of the basic regulation. section 80 (1), (2), and (8) 2. paragraph, of the law on financial business





 

 





6. Investment management companies, which are allowed under section 10, paragraph 2, of the basic regulation. section 9, paragraph 1, of the law on financial business





 

 





Provision of audit notice





Bekræftelsernes wording





 



Pursuant to section 4 of the Executive order on Auditors, paragraph 8, we must confirm that:







§ 4, paragraph 8 (E)





We have complied with the prohibition to carry out assistance and advisory tasks, see. Article 24, paragraph 4, 1. paragraph, of the law on the approved Auditors and audit firms, including the





 



-We or other people in the Court undertaking did not take part in posting or similar registrations, which forms the basis of the annual report or other conditions made statement and





 



-We or other people in the audit company has not participated in the drafting of the annual report or other document declaration relates





 



In accordance with paragraph 17 Auditors (4), we confirm that:







section 17, paragraph 4 (I)





We have not come up in a situation where we declare us or inform you of facts or documents we or staff of the internal audit function has prepared the basis for





 



The wording of the





 



In accordance with paragraph 5 shall we inform Auditors that:







§ 5 (1) (8). 1 (E)





the financial company guidelines concerning the verification of compliance with the prohibition of speculation under section 77, paragraph 4, of the law on financial business is estimated to be reassuring and have functioned appropriately § 5 (1) (8). 2 (E)





control of compliance with speculative prohibition pursuant to section 77, paragraph 5, of the financial business Act did not give rise to observations







§ 5 (1) (8). 3 (E)





established business practices in order to comply with the provision of intra-group exposures in § 182 in the financial business Act







§ 5 (1) (8). 4 (E)





There have not been found significant errors or omissions in connection with the review of transactions between the company and the companies included in the scope of section 2 of the Ordinance on intragroup transactions







§ 5 (1) (8). 4 (E)





There is given a detailed description of intragroup transactions, which are essential or unusual species on the page ... 9)







§ 5, stk. 2, nr. 1 (E)





According to the audit Agreement agreed tasks, to be performed by internal audit is performed, as well as to the proper functioning of the internal audit function including the external audit have not been aware of the circumstances which, individually or together, has been denied that the internal audit function operates independently of the day-to-day management







section 5, paragraph 2, no. 2 (E)





We agree with the contents of all the internal audit Protocol inputs relating to the financial year





 



According to audit the Executive order on section 17 (5), we must inform you that:







section 17, paragraph 5 (I)





We have received all the information that is requested





 



According to audit the Executive order on section 30, paragraph 2, should we inform you that:







section 30 (1) (8). 1 (E/I)





investment management company, if it has a minimum capital requirement of 0.3 mio. euro, see. § 125 (2) nr. 4, in the financial business Act and provides services with derivatives contracts, uncovers the derivative contracts with other securities dealer







section 30 (1) (8). 2 (E/I)





investment management company's activities are in line with the company's permission to drive the investment management business







section 30 (1) (8). 3 (E/I)





investment management company can calculate the individual contributor and the investor's assets covered





 



The wording of the statements was





 



Pursuant to section 6 of the Executive order on Auditors, we must declare that:







§ 6, nr. 1 (E)





the company's administrative and accounting practice in essential areas, including business processes and internal control mechanisms, is organized and operates with integrity. In this connection, we must also declare that-an organization's entire system, data, and operational safety are and work with integrity,-who in the company transferred control of the company's holdings of securities and the like,-posting is organised in such a way that it can serve as a basis for reports to be made to the FSA, and





 



-We have not been aware of facts which run counter to the requirements of legislation on financial services companies







§ 6, nr. 2 (E)





the Board of Directors of allocated exposures to and received guarantees from Board members or directors, as well as companies in which these are directors or members of the Board of Directors, has been granted in accordance with the company's usual business conditions and on market-based terms, see. section 78, paragraph 2, of the law on financial business







§ 6, nr. 3 (E)






the financial company does not have engagement with businesses owned or operated by the Executive or other senior staff or Executive Board members or other senior staff which in any other way participate in the management or operation of the basic regulation. section 80 (1), (2), and (8) 2. paragraph, of the law on financial business





 

 





7. Investment funds





 

 





Provision of audit notice





Bekræftelsernes wording





 



Pursuant to section 4 of the Executive order on Auditors, paragraph 8, we confirm that:







§ 4, paragraph 8 (E)





We have complied with the prohibition to carry out assistance and advisory tasks, see. Article 24, paragraph 4, 1. paragraph, of the law on the approved Auditors and audit firms, including at-we or other people in the Court undertaking did not take part in posting or similar registrations, which forms the basis of the annual report or other conditions made a statement and we or other people in the audit company has not participated in the drafting of the annual report or other document declaration relates





 



In accordance with paragraph 17 Auditors (4), we confirm that:







section 17, paragraph 4 (I)





We have not come up in a situation where we declare us or inform you of facts or documents we or staff of the internal audit function has prepared the basis for





 



The wording of the





 



In accordance with paragraph 5 shall we inform Auditors that:







§ 5 (1) (8). 1 (E)





the Association's guidelines under section 34 (4) of the Act on investment associations and special associations and other collective investment schemes, etc. are deemed to be reassuring and have functioned appropriately







§ 5 (1) (8). 2 (E)





control of compliance with speculative prohibition pursuant to section 34, paragraph 5, of the Act on investment associations and special associations and other collective investment schemes, etc. have not given rise to comments







section 5, paragraph 2, no. 1 (E)





According to the audit Agreement agreed tasks, to be performed by internal audit is performed, as well as to the proper functioning of the internal audit function including the external audit have not been aware of the circumstances which, individually or together, has been denied, to the internal audit works independently of the day-to-day management







section 5, paragraph 2, no. 2 (E)





We agree with the contents of all the internal audit Protocol inputs relating to the financial year





 



According to audit the Executive order on section 17 (5), we must inform you that:







section 17, paragraph 5 (I)





We have received all the information that is requested





 



Pursuant to section 31 of the Executive order on Auditors, we must inform you that:







section 31, nr. 1 (E/I)





calculations of emission and redemption price shall be made in accordance with it under section 48, paragraph 5, of the Act on investment associations and special associations and other collective investment schemes, etc., issued Executive order







section 31, nr. 2 (E/I)





placement rules, see. Chapter 13-14 of the Act on investment associations and special associations and other collective investment schemes, etc., are complied







section 31, nr. 3 (E/I)





Association or a Department does not have been or are under the law's minimum requirements for assets size, see. § 4, paragraph 7, of the Act on investment associations and special associations and other collective investment schemes, etc.





 



The wording of the statements was





 



Pursuant to section 6 of the Executive order on Auditors, we must declare that:







§ 6, nr. 1 (E)





the Association's administrative and accounting practice in essential areas, including business processes and internal control mechanisms, is organized and operates with integrity. In this connection, we must also declare that-the Association's total system, data, and operational safety are and work with integrity,





 



-that in the Association transferred control of the Association's inventory of securities and the like,-posting is organised in such a way that it can serve as a basis for reports to be made to the FSA, and





 



-We have not been aware of facts which run counter to the requirements of legislation on investment funds





 

 





8. Special associations





 

 





Provision of audit notice





Bekræftelsernes wording





 



Pursuant to section 4 of the Executive order on Auditors, paragraph 8, we confirm that:







§ 4, paragraph 8 (E)





We have complied with the prohibition to carry out assistance and advisory tasks, see. Article 24, paragraph 4, 1. paragraph, of the law on the approved Auditors and audit firms, including the





 



-We or other people in the Court undertaking did not take part in posting or similar registrations, which forms the basis of the annual report or other conditions made statement and





 



-We or other people in the audit company has not participated in the drafting of the annual report or other document declaration relates





 



In accordance with paragraph 17 Auditors (4), we confirm that:







section 17, paragraph 4 (I)





We have not come up in a situation where we declare us or inform you of facts or documents we or staff of the internal audit function has prepared the basis for





 



The wording of the





 



In accordance with paragraph 5 shall we inform Auditors that:







§ 5 (1) (8). 1 (E)





the Association's guidelines under section 34 (4) of the Act on investment associations and special associations and other collective investment schemes, etc. are deemed to be reassuring and have functioned appropriately § 5 (1) (8). 2 (E)






control of compliance with speculative prohibition pursuant to section 34, paragraph 5, of the Act on investment associations and special associations and other collective investment schemes, etc. have not given rise to comments







section 5, paragraph 2, no. 1 (E)





According to the audit Agreement agreed tasks, to be performed by internal audit is performed, as well as to the proper functioning of the internal audit function including the external audit have not been aware of the circumstances which, individually or together, has been denied that the internal audit function operates independently of the day-to-day management







section 5, paragraph 2, no. 2 (E)





We agree with the contents of all the internal audit Protocol inputs relating to the financial year





 



According to audit the Executive order on section 17 (5), we must inform you that:







section 17, paragraph 5 (I)





We have received all the information that is requested





 



Pursuant to section 31 of the Executive order on Auditors, we must inform you that:







section 31, nr. 1 (E/I)





calculations of emission and redemption price shall be made in accordance with it under section 48, paragraph 5, of the Act on investment associations and special associations and other collective investment schemes, etc., issued Executive order







section 31, nr. 2 (E/I)





placement rules, see. Chapter 15 of the Act on investment associations and special associations and other collective investment schemes, etc., are complied







section 31, nr. 3 (E/I)





Association or a Department does not have been or are under the law's minimum requirements for assets size, see. § 5, paragraph 7, of the Act on investment associations and special associations and other collective investment schemes, etc.





 



The wording of the statements was





 



Pursuant to section 6 of the Executive order on Auditors, we must declare that:







§ 6, nr. 1 (E)





the Association's administrative and accounting practice in essential areas, including business processes and internal control mechanisms, is organized and operates with integrity. In this connection, we must also declare that-the Association's total system, data, and operational safety are and work with integrity,





 



-that in the Association transferred control of the Association's inventory of securities and the like,





 



-posting is organised in such a way that it can serve as a basis for reports to be made to the FSA, and





 



-We have not been aware of facts which run counter to the requirements of legislation concerning special associations





 

 





9. Fåmandsforeninger





 

 





Provision of audit notice





Bekræftelsernes wording





 



Pursuant to section 4 of the Executive order on Auditors, paragraph 8, we confirm that:







§ 4, paragraph 8 (E)





We have complied with the prohibition to carry out assistance and advisory tasks, see. Article 24, paragraph 4, 1. paragraph, of the law on the approved Auditors and audit firms, including the





 



-We or other people in the Court undertaking did not take part in posting or similar registrations, which forms the basis of the annual report or other conditions made statement and





 



-We or other people in the audit company has not participated in the drafting of the annual report or other document declaration relates





 



In accordance with paragraph 17 Auditors (4), we confirm that:







section 17, paragraph 4 (I)





We have not come up in a situation where we declare us or inform you of facts or documents we or staff of the internal audit function has prepared the basis for





 



The wording of the





 



In accordance with paragraph 5 shall we inform Auditors that:







§ 5 (1) (8). 1 (E)





the Association's guidelines under section 34 (4) of the Act on investment associations and special associations and other collective investment schemes, etc. are deemed to be reassuring and have functioned appropriately § 5 (1) (8). 2 (E)





control of compliance with speculative prohibition pursuant to section 34, paragraph 5, of the Act on investment associations and special associations and other collective investment schemes, etc. have not given rise to comments







section 5, paragraph 2, no. 1 (E)





According to the audit Agreement agreed tasks, to be performed by internal audit is performed, as well as to the proper functioning of the internal audit function including the external audit have not been aware of the circumstances which, individually or together, has been denied that the internal audit function operates independently of the day-to-day management







section 5, paragraph 2, no. 2 (E)





We agree with the contents of all the internal audit Protocol inputs relating to the financial year





 



According to audit the Executive order on section 17 (5), we must inform you that:







section 17, paragraph 5 (I)





We have received all the information that is requested





 



Pursuant to section 31 of the Executive order on Auditors, we must inform you that:







section 31, nr. 1 (E/I)





calculations of emission and redemption price shall be made in accordance with it under section 48, paragraph 5, and section 113 of the Act on investment associations and special associations and other collective investment schemes, etc., issued Executive order







section 31, nr. 2 (E/I)





placement rules, see. Chapter 13-15 and section 113 of the Act on investment associations and special associations and other collective investment schemes, etc., are complied







section 31, nr. 3 (E/I)





Association or a Department does not have been or are under the law's minimum requirements for assets size, see. section 111, paragraph 6, of the Act on investment associations and special associations and other collective investment schemes, etc.





 



The wording of the statements was





 



Pursuant to section 6 of the Executive order on Auditors, we must declare that:







§ 6, nr. 1 (E)






the Association's administrative and accounting practice in essential areas, including business processes and internal control mechanisms, is organized and operates with integrity. In this connection, we must also declare that-the Association's total system, data, and operational safety are and work with integrity,-that of the Association transferred control of the Association's inventory of securities and the like,-posting is organised in such a way that it can serve as a basis for reports to be made to the FSA, and





 



-We have not been aware of facts which run counter to the requirements of the legislation relating to fåmandsforeninger





 

 





10. Hedge funds





 

 





Provision of audit notice





Bekræftelsers wording





 



Pursuant to section 4 of the Executive order on Auditors, paragraph 8, we confirm that:







§ 4, paragraph 8 (E)





We have complied with the prohibition to carry out assistance and advisory tasks, see. Article 24, paragraph 4, 1. paragraph, of the law on the approved Auditors and audit firms, including the





 



-We or other people in the Court undertaking did not take part in posting or similar registrations, which forms the basis of the annual report or other conditions made a statement and we or other people in the audit company has not participated in the drafting of the annual report or other document declaration relates





 



In accordance with paragraph 17 Auditors (4), we confirm that:







section 17, paragraph 4 (I)





We have not come up in a situation where we declare us or inform you of facts or documents we or staff of the internal audit function has prepared the basis for





 



Information text





 



In accordance with paragraph 5 shall we inform Auditors that:







§ 5 (1) (8). 1 (E)





the Association's guidelines under section 34 (4) of the Act on investment associations and special associations and other collective investment schemes, etc. are deemed to be reassuring and have functioned appropriately







§ 5 (1) (8). 2 (E)





control of compliance with speculative prohibition pursuant to section 34, paragraph 5, of the Act on investment associations and special associations and other collective investment schemes, etc. have not given rise to comments







section 5, paragraph 2, no. 1 (E)





According to the audit Agreement agreed tasks, to be performed by internal audit is performed, as well as to the proper functioning of the internal audit function including the external audit have not been aware of the circumstances which, individually or together, has been denied that the internal audit function operates independently of the day-to-day management







section 5, paragraph 2, no. 2 (E)





We agree with the contents of all the internal audit Protocol inputs relating to the financial year





 



According to audit the Executive order on section 17 (5), we must inform you that:







section 17, paragraph 5 (I)





We have received all the information that is requested





 



Pursuant to section 32 of the Executive order on Auditors, we must inform you that:







section 32, no. 1 (E/I)





calculations of emission and redemption price shall be made in accordance with it under section 48, paragraph 5, and section 114 (f) of the Act on investment associations and special associations and other collective investment schemes, etc., issued Executive order







section 32, no. 2 (E/I)





Association or a Department does not have been or are under the law's minimum requirements for assets size, see. section 114 a, paragraph 6, of the Act on investment associations and special associations and other collective investment schemes, etc.





 



The wording of declarations





 



Pursuant to section 6 of the Executive order on Auditors, we must declare that:







§ 6, nr. 1 (E)





the Association's administrative and accounting practice in essential areas, including business processes and internal control mechanisms, is organized and operates with integrity. In this connection, we must also declare that-the Association's total system, data, and operational safety are and work with integrity,-that of the Association transferred control of the Association's inventory of securities and the like,-posting is organised in such a way that it can serve as a basis for reports to be made to the FSA, and





 



-We have not been aware of facts which run counter to the requirements of legislation on hedge funds





 

 





11. Securities Traders





 

 



 



Pursuant to section 37 of the Executive order on Auditors, we inform you that:







section 37 (E/I)





Securities handler comply with the provisions of § 72, paragraphs 1 to 3 of the financial business Act including





 



-that we have not been aware of facts which run counter to the requirements of the Executive order on the organisational requirements and the conditions for the operation of the company as a securities dealer





 

 





1) please refer to the relevant page numbers in the audit report.

2) refer to section 24 of the Executive order on Auditors, paragraphs 3-5 of the additional requirements in connection with this statement.

3) reference is made to audit the Executive order on section 24, paragraph 3, of additional requirements in connection with this statement.

4) please refer to the relevant page numbers in the audit report.

5) please refer to the relevant page numbers in the audit report.

6) please refer to the relevant page numbers in the audit report.

7) please refer to the relevant page numbers in the audit report.

8) please refer to the relevant page numbers in the audit report.

9) please refer to the relevant page numbers in the audit report.





 

 







Annex 2

Summary of comments in the audit of the hearing relating to the annual report

1. The provision

The following is a detailed explanation of the content of the provision, including an interpretation of the key words in this provision.

1.1 the wording

The requirement for summary of all comments shown by audit notice section 4, paragraph 4, and article 17, paragraph 3:


In a separate section in the minutes relating to the annual report to the Auditors (external audit, respectively, internal audit) summarize all comments, as the review has given rise to carry over to the Board of Directors. The summary must contain a balance sheet relating to the comments that have been raised relating to the financial year in question, as well as the status relating to the comments, which appeared in the minutes concerning the sweet open as previous annual report.

1.2 the need for a separate section

The requirement for a separate section on comments is indispensable. It will say that the separate section on comments must always be included, regardless of whether there is a comment or not. This applies both in the external audit and internal audit in the minutes.

If the external audit is in agreement with the contents of the internal audit, 10 minutes), it is sufficient that any comments only reflected in the internal audit minutes. Where appropriate, the separate parts of the external audit institutions indicate that the comments reflected in the internal audit minutes. Certain conditions, however, is of such a nature that they should be discussed in the external audit as well as the internal audit minutes, URf.eks. conditions that result in reservations and/or additional information in the audit report.

The separate section should be placed in a location where it is easy to find, and must be marked with a heading that makes it clear where the comments are summarized. If a table of contents for audit of the hearing to the annual report, paragraph's placement must be apparent thereof.

1.3 the requirement for summary

The idea behind this provision is to provide an overview. A summary (in a few lines) of each of the raised arguments are therefore better than a repeat of the entire description. The actual problem must be stated in the summary. Several comments regarding the same should also be written together, where appropriate, URf.eks. It may be appropriate to compile several comments on the business of lending to one point.

The summary of observations must be made at company level. For groups with must there also included remarks from subsidiaries which are relevant assessed at group level, see. Audit Executive order § 5, paragraph 3.

1.4 demand for all comments

All-all without exception-the in-form audit report raised arguments should be summarized in the separate parts of the hearing relating to the annual report.

There cannot therefore be brought a materiality assessment for the purpose of determining whether a note should be added up.

A relationship that once in the audit report is made as a comment, be included in future in the annual summary of comments in the audit of the hearing to the annual report. Thus, it is not sufficient that an audit of the minutes in this year's race is apparent that a point had been clarified. It shall also be indicated in the next annual summary. Only then deleted the comment of the future annual summaries.

1.5 Notes vs. comments

A comment is to be understood as auditor's observation that a relationship is not in accordance with the relevant rules, aftaler11) or standards (including ' good usage '), which may be in force for the area in question. A comment may also include a relationship as auditor during use of her professional experience did not find appropriate, without that relationship, however, is in violation of specific rules, agreements or standards.

A comment is to be understood as auditor's supplementary information regarding a given relationship.

Comments are therefore not the same as comments. A comment function is to draw the Board's attention to the fact that is not in accordance with the rules, etc., or that are not appropriate. A comment function, on the other hand, is only to clarify a fact that did not give rise to observations.

Another difference between a comment and a comment is that a comment relates to a relationship that is overcome.

The following conditions will typically give rise to comments of relevance to the Board:




-exceeding of the solvency limits, exposure limits, mortgage lending limits, violation of provisions, speculative overshoot bin boundaries, failure to comply with the Act's minimum requirements for assets size/capital requirement, etc.,

– non-compliance with the Board's obligations in the Periodenøgle field. Companies Act, financial business Act and the specific sectoral laws, accounting law, financial statements,

– breach of reporting requirements for the FSA,

– other offences, 12)

– the declarations required by the FSA in the court hearing, which the auditor has comments to make,

– conditions that result in reservations and/or additional information in the audit report,

– business processes, where there is a pronounced need to strengthen the internal controls (without affecting the information that business corridors are reassuring),

-exceeding of the of the Board of directors laid lines/guidelines, and

– systems, internal control mechanisms or arrangements that are not appropriate and/or effective regulation. the Audit Ordinance section 35, paragraph 1.



It must be stressed that the above list is not exhaustive, but only a number of examples of relevant types of comments.

1.6 the requirement to give a status

In the provisions required to be granted a status of




– the comments that have been raised relating to the financial year in question, and

– the comments that emerged in the hearing concerning the sweet open as previous annual report.



Comments that have been made in the current fiscal year, include comments in the minutes of meetings during the year as well as of the hearing relating to the annual report. What matters is whether the note is raised as part of the review relating to the financial year in question.

Status shall bear a reference to the pages where comments have been discussed in the relevant minutes concerning the annual report, or references to protokollaterne relating to the previous annual reports, if it is not the first time the comment referred to.

Comments can have two types of status-resolved or not.

Clarified comments

Comments can be resolved in one of two ways:




– the relationship is no longer relevant, or

– the relationship is resolved.



Comments that have lost their relevance, can URf.eks. be notes about problems with the calculation of value adjustments on securities in a fund system, which fund the system subsequently has been replaced with a new fund system that can calculate the value adjustments correctly. Further include comments regarding a specific violation of the rules, there is no speculative expression of poor internal controls. Cases of fraud are also examples of comments that mentioned once and then lose their relevance.

Comments that have been remedied, may URf.eks. be comments on lack of forretningsgangs description, which subsequently is drawn up.

For each of the clarified comments must indicate how the relationship is resolved.

Sweet open comments

Comments that are not eliminated, is inherently sweet open. For each of the sweet open comments must indicate, at which point the management expects that the relationship is resolved. If the relationship is partly remedied, this must also be reflected in. Furthermore, it should be reflected in the status, if the expected remediation time changes along the way.

Since the review is carried out, taking into account, among other things, the company's internal control environment, it is appropriate that the Auditor verifies whether previously raised arguments are clarified. The review is conducted on the basis of an assessment of materiality and risk, why that, among other things, made use of a system of rotation, so that there are longer between review of areas that are less essential and risky than areas that are essential and risky. Auditor will at the latest should relate to earlier raised arguments when the review next time include the area to which the comment applies.

Information about how the individual comments are clarified or resolved, therefore, is not expected to be part of the review, and information on this matter can therefore be based on the information received by the management (Organization).

If the auditor's professional scepticism means that the auditor has reason to doubt the enlightened, the auditor verify the validity of enlightenment.

Auditor during his revision becomes aware that the information provided by the management (Organization) on the clarification of comments is misleading or erroneous, the accountant do the Board alerted the audit Protocol.

If the Auditor, incidentally, become aware of conditions that should be remedied, but has not yet been the auditor must examine that area the following year. Relate comment central conditions for the presentation of accounts, re-examine the audit plan and the auditor must, where necessary, carry out compensatory audit work for this year.

2. Examples


Below are shown two examples that illustrate how the Auditor can summarize his remarks in such a way that they meet the requirements of the Audit Ordinance. The first model can be used in cases where the external auditing refers to the internal audit observations. The second model shows how the separate section on comments can be designed.

Example 1

X. Summary of comments

' Pursuant to the Audit Ordinance must review in a separate section of the annual report and the consolidated financial statements, the audit of the hearing to summarize all comments, as the review has given rise to carry over to the Board of Directors. The summary must contain a balance sheet relating to the comments that have been raised relating to the financial year in question, as well as the status relating to the comments, which appeared in the hearing concerning sweet open as the previous financial year.

It has been agreed with the internal audit, that the summary in accordance with the notice alone is demonstrated by internal audit Audit audit minutes, to which we refer.

We have no further comments. "

Example 2

X. Summary of comments

' Pursuant to the Audit Ordinance must review in a separate section of the annual report and the consolidated financial statements, the audit of the hearing to summarize all comments, as the review has given rise to carry over to the Board of Directors. The summary must contain a balance sheet relating to the comments that have been raised relating to the financial year in question, as well as the status relating to the comments, which appeared in the hearing concerning sweet open as the previous financial year.

Comments that have been resolved in fiscal year 200 x, is tagged with A, and entries open standing, is tagged with Å. The listed page references refer to the pages in the audit report, which comments have been addressed. In those cases where it is not the first time the remark referred to, reference also includes references to the minutes of meetings relating to previous annual reports in addition to the reference to the minutes relating to the financial year in question.

Unless otherwise provided, we have not verified information about whether comments are rectified/under remediation. '

Speculative rules (A-page xxx)

The ban on .... has been breached in two cases. According to the enlightened ... ... ...

Lending area (z-page xxx, page xxx)

There is a general need to update forretningsgangs descriptions so that they correspond to the actual-and, in fact, reassuring-business times. According to the reported, will be updated in the course descriptions of forretningsgangs xxxxx-simultaneously with the implementation of the new xxx-system.

Securities field (Å – page xxx, page xxx and A – z – page xxx)

We have found that on stock area has been problems in connection with the vote of the foreign securities. Launched action to strengthen the internal controls in connection with the restatement of foreign securities, and according to the expected work carried out during the fall 200 x.

We have found that the Board's instructions now contains a description of the products front-office must act, as well as requirements for the management of market risks.

Absence of an up-to-date register of shareholders in accordance with the Danish public companies Act § 25. We have been informed that an updated register of shareholders will be presented at the Board meeting the x March 200 x.

It-application (Å – page xxx)

There is a need for the establishment of a contingency plan for the servers that run the Internet Bank operation. Management has prepared an action plan for improving disaster preparedness, which is expected to be implemented in 1. quarter 200 x.

Intra-group transactions (A – page xxx, page xxx and A – z – page xxx)

In the year 200 x portfolio companies were not covered by the guidelines for the implementation of intra-group transactions, but we have now ensured that these companies are subject to the guidelines approved by the Board of Directors.

The agreement with xxxxx, which was put into effect without the formal approval of the Executive Board. We have found that the agreement has now been approved by the Executive Board.

Payment of commissions is done on the basis of an agreement with yyyyy, are not updated. We have subsequently found that an updating of the agreements relating to commissions has been initiated and is expected to be completed in the second quarter 200 x. '
Annex 3

Internal audit tasks and behaviors

There is in revisionsbekendgørelsen established a framework within which, the internal audit function must perform tasks. The purpose is to ensure the independence of the internal audit activities, which are audited.

In the following sections 1 outlined the conditions that internal audit should be aware of before a task is taken. Then there is section 2 provided a number of examples of tasks which the internal audit can respectively cannot perform.

1. the provisions of the audit notice

1.1 Only review

According to audit the Executive order on section 12, paragraph 2,




– must audit the head and employees of the internal audit function cannot participate in other work within the company or group than revision.



1.2 Independence

Pursuant to section 12 of the Audit Ordinance, (3)




– internal audit must not assume tasks when there are circumstances which are apt to arouse doubts with an informed third party about the internal audit independence.



It is clear from the audit of the Executive order on section 14, paragraph 3, to




– Audit tasks must not cause the audit Chief comes in a situation where he or she declares herself or inform you of facts or documents, as the audit manager or the employees of the internal audit function has prepared the basis for.



Provisions to ensure the internal audit independence. Audit Manager carries out assurance engagements under the Audit Ordinance and also endorse the annual report, if this is selected by the Board of Directors. The internal audit function must therefore always upholding its independence, like external audit must safeguard its independence. The internal audit function, however, has a slightly different starting point for its independence, due to its particular role in the financial business.

Internal audit must, in order to safeguard its independence, always be aware of the fact that the audit manager and the employees of the internal audit function:




– has a duty to identify and assess the circumstances and relationships that create threats to independence, and prove that they have arranged for this

– take the necessary steps to eliminate those threats or reduce them to an acceptable level through the application of security measures, as far as this is possible given that the starting point is that they are employed in the company and

– must not be allowed to perform auditing tasks, which means that there will be circumstances which are apt to arouse doubts with an informed third party about the internal audit independence.



1.3 Sufficient competence

In addition, the internal audit function, see. revision of the Executive order on section 14 (2)




– alone must assume the functions which it has sufficient competence to perform.



The following is the definition of which tasks are carried out in accordance with the provisions of the audit manager and staff in the internal audit, deepened.

2. Examples of workspaces for internal audit

2.1 financial audit and review

Financial audit and review includes review and review of historical financial information, including annual reports, interim reports, etc. work includes a review and evaluation of the business processes as well as the manual and system-based controls that relate to the making of the historic financial information.

Internal audit tasks include – depending on the level of competence and of whether it is selected, the internal audit shall endorse the annual report or not – for example:




– revision and submission of Auditors ' report on the annual reports,

– review of period reports

– the submission of declarations, information and information in accordance with the Danish financial business Act and the audit notice,

– submission of statements against public authorities,

– assistance for external audit in connection with the issuance of subordinated capital and offering of shares

– assessment of whether procedures and internal controls meet the financial business Act § 71 with associated guidelines and internal policy documents and

– assistance with due-diligence for the purchase/sale of business.



In most cases, the key task for internal audit be participation in the financial review. It is, however, more and more often that internal audit focus to a greater extent directed against the operational audit, see. the reference below, IE. that internal audit's involvement in the financial audit of the annual report be deselected or reduced.

If the audit manager shall endorse the annual report, audit manager must participate in the review of the essential and risky areas, see. audit of the Executive order on section 15, paragraph 2. Assessment of which areas are significant and risky, is according to the guidelines in auditing standard 315, and will depend on the type and complexity of each company.


In credit institutions will URf.eks. lending, fees, commercial inventory, property, unlisted equity securities and derivative financial instruments, as well as liabilities as URf.eks. pension obligations and guarantees as a starting point would be essential as well as risky, inter alia. because of complex rules, use of models, compliance with placement rules and statement of solvency.

In insurance companies will URf.eks. premium income, replacement costs/insurance benefits as well as the return on investment is considered as essential and risky. Also the associated investment assets and provisions for insurance and investment contracts, as well as reinsurance and derivative financial instruments are usually significant and risky areas.

Annual report content, including management report, accounts/consolidated accounts, 5-year view, and notes, as well as accounting practices, be considered in all cases as being essential and risky. The above examples for each of the types of company are only meant as inspiration, since in all cases to be made a specific and individual assessment, of which documented significant and risky areas attached to each business activity.

The internal audit as part of the review may not assume tasks when there are circumstances which are apt to arouse doubts with an informed third party about the internal audit independence. In the performance of the financial audit, the internal audit, for example, must not:




– help to make decisions or take responsibility,

– carry out the control tasks – be a part of the internal control,

– the drafting or preparation of the annual report or other statements of historical financial information,

--post or otherwise register,

– participate in the recruitment of employees to the company, except for recruitment of employees for the internal audit function,

– Manage salaries, real estate, remodeling or similar or

– assigning payments or be procuration gardens for the financial business on matters other than those relating to costs related to the internal audit.



This applies regardless of whether the audit manager shall endorse the annual report or not.

The mentioned tasks are not reviewed, see. audit of the Executive order on section 12, paragraph 2, like internal audit will come into conflict with the ban on self-review by performing the tasks referred to in annex IX. audit of the Executive order on section 14, paragraph 3.

In internal audit undertake tasks that are not mentioned in the description, or where the function to be used a larger number, audit manager Board of directors or any Audit Committee obtain acceptance before the task is taken.

2.2 Operational audit

Operational review involves an assessment of the company's processes, and with the aim to test and report whether they are in accordance with the objectives set by the management.

Operational audit involves depending on the company's activity and size, among other things. a process review with a focus on efficiency, an assessment of the reliability of the financial and operational reporting, compliance with laws and regulations as well as protection of the company's values. Investigation of fraud may be included.

The internal audit, for example, must not:




– help to make decisions or take responsibility,

– carry out the control tasks – be a part of the internal control,

– responsible for the implementation of the amended operating routines, including efficiency measures and rationalizations,

– stand for the preparation of the daily monitoring and reporting of corrective action,

– participate in the setting of the operational objectives,

– decide or be responsible for execution of sanctions at the uncovered fraud or

– lay down or stand for the preparation of operational strategies and processes.



The extent of the operational review agreed with the Management Board in the function description, however, so that the agreed tasks are kept within the framework of the Audit Ordinance.

2.3 review of risk management

Financial firms are exposed to different risk types. The main types of risks are credit risk, market risk, liquidity risk, operational risk and business risk. The revision includes the established risk management within the individual risk types, including the stipulated limits and the established reporting structure.

Internal audit must assess whether the established policies is located inside the framework of the financial business Act and related regulations and guidelines. Internal audit cannot assume supervisory responsibilities, so that internal audit will be part of the internal control system.

For example, the development of risk management strategies to the Management Board for approval, as well as the setting of the level of risk typical management tasks, which therefore cannot be carried out by the internal audit.

Internal audit cannot assume the development and control tasks related to individual risk types, since the internal audit will be able to get in a situation where it must declare themselves about tasks, as it has itself contributed in preparing.

As a starting point, there is nothing to prevent internal audit acts as the independent entity in relation to the section 75 guide sufficient capital base and individual solvency requirement if internal audit is independent, and it is not in conflict with other laws and regulations.

2.4 review of the compliance function

Compliance function is responsible for assisting management in effectively manage corporate compliance risks. If an independent compliance function not established, is responsible for the day-to-day management to deal with any compliance risks and appoint another entity that is responsible for carrying out the necessary checks.

Internal audit shall, on the basis of materiality and risk, review, and assess whether they are in the company of established processes for dealing with compliance function's activities is reassuring. Internal audit cannot carry out compliance function, or parts thereof, as this is not incompatible with the audit engagement (self-auditing).

2.5 Audit tasks that are not directly related to the annual report

Tasks that are not part of the audit work, leading to the endorsement of the annual report, but which are seen as an audit assignment, must explicitly appear in the function description.

It does not however apply to audit work on the submission of declarations and information under the Audit Ordinance which does not relate to the approval of the annual report.

3. conduct

Audit managers, Deputy Heads and employees of the audit, the internal audit shall abide by the following ethical principles in such a way that both the individual auditor as the Department is not affected negatively.

Integrity

Auditor must be fair and honest in all professional and commercial links.

Objectivity

The auditor must not be biased, have conflicts of interest or be under undue influence of others so that the professional and business judgment is suppressed.

Professional competence and due care

Auditor is obligated to maintain its professional knowledge and skills at a level that is necessary to ensure the provision of a qualified professional performance based on an up-to-date knowledge of the latest developments in good practice, legislation and practices. Auditor by the delivery of professional services must act carefully and in accordance with relevant academic and professional standards.

Confidentiality

Auditor must respect the confidentiality of information obtained in the context of the employment relationship, and shall not disclose such information to third parties without proper and specific permission to do so, unless there is a legal or professional right or duty to do so. Confidential information obtained in the context of the employment relationship may not be used to obtain personal benefit of auditor or other third parties.

Professional conduct

The auditor must comply with relevant legislation and other regulations and avoid any behaviour which may discredit the internal and external audit.

Further inspiration can be retrieved in the IFAC Code of Ethics» Code of Etics for Professional Accountants ', located on the IFAC website (www.ifac.org) or IIA's code of ethics, which is on the IIA's website (URwww.theiia.org). The code of ethics is published also by FSR in an Edition adapted to Danish conditions.
Official notes 1) Ordinance contains provisions that implement Commission Directive No. 2006/73/EC of 10. August 2006 on the implementation of European Parliament and Council Directive 2004/39/EC as regards organisational requirements and operating conditions for investment firms, as well as definitions of terms for the purposes of that directive.

10) please refer to the relevant page numbers in the audit report.

11) including special requirements from URf.eks., the Board of directors or the shareholders.

12) There is a requirement for external audit in its minutes for the annual report must indicate whether external audit is in agreement with the contents of the internal audit Protocol, see. Audit 5(3-4) (2). 2.