Internal control over financial reporting
The Board is responsible for internal control, pursuant to the Swedish Companies Act and the Code.
Pricer’s internal control process shall provide reasonable assurance regarding the quality and reliability of its financial reporting. It shall also ensure that reports are prepared in accordance with the applicable laws and regulations, and the requirements that apply to publicly listed companies in Sweden.
The foundation for internal control over financial reporting is based on the organizational and system structures, decision-making paths and separation of duties that are documented and communicated in control documents, policies and manuals. The Board has adopted rules of procedure that regulate the Board’s responsibilities and work on the Board’s committees. To uphold an effective control environment and good internal control, the Board has delegated practical responsibility to the CEO and drafted instructions for the CEO.
To safeguard the quality of the financial reporting, the company has a number of internal control instruments such as certification and authorization routines and a standard model for ongoing monthly reporting that has been designed together with the Board. Pricer uses an integrated ERP system, Jeeves, that handles all financial flows in combination with order management, invoicing, logistics, etc.
The Board is responsible for ensuring that significant financial risks and risks for misstatements in the financial statements are identified and dealt with.
Control activities are designed to ensure the accuracy and completeness of the financial statements. Procedures and actions have been designed to manage significant risks related to the financial statements, which have been identified in the risk assessment. Control activities are available at both a general and detailed level.
By way of example, complete monthly financial statements are prepared that are monitored by the unit and functional managers and controllers. Senior management meets at least once a month for a review of the business situation. In addition, representatives from the finance function visit group companies several times a year to discuss current issues and review the results and financial status, and verify that processes are being observed and developed.
The Board monitors the activities through monthly reports in which the CEO comments on business performance, results and financial position. Measures and activities aimed at strengthening and optimizing internal controls are implemented on a regular basis.
Information and communication
The Board has adopted an information policy that states what is to be communicated, by whom, and in what manner, in order to safeguard the accuracy and completeness of the external information. To ensure effective and correct dissemination of information, there are guidelines and routines that regulate how financial information is communicated both internally and externally. For external communication Pricer collaborates with Cision, which publishes the financial reports and other press releases on behalf of the company.
All financial reports and press releases that are issued by the company can be found on the company’s website. In addition, the press releases are distributed internally via email in connection with their publication. The CEO is responsible for ensuring that the financial reports are distributed internally in connection with external publication of the quarterly and interim reports.
The company’s financial position is discussed at each Board meeting, where the Board receives de- tailed monthly reports on the financial position and development of operations. Furthermore, the Board is provided with a financial report every month for ongoing monitoring. The company’s ERP system Jeeves provides the basis for the financial information.
Internal control is monitored continuously. This is done primarily in the form of deviation reporting against budget/forecast and the previous year’s outcome. The Board reviews each interim report and discusses the contents with the CFO and, when appropriate, with the company’s auditor. The company monitors the areas for improvement in internal control that are reported by the external auditor. Furthermore, the CEO and the CFO hold regular meetings with the Board’s Audit Committee to discuss financial matters on an ongoing basis. The accounting/finance staff that are employed in the subsidiaries have explicit responsibility for reporting deviations to the central finance and controller organization.
In accordance with the rules in the Swedish Corporate Governance Code, the Board has assessed the need for a special internal audit function. Against this background, the Board of Directors is of the opinion that there is no need in the company at present.