Risk management, Audit

Carefully managing potential risks to the Company is a key component of our daily work. Volkswagen Group’s risk management system is oriented toward identifying, assessing, communicating and responding to risks at an early stage. This system is reviewed on an ongoing basis and adjusted if and when conditions change. A detailed description of the risk management system and our accounting-related internal control system can be found in the Risk Report of this annual report.

The Supervisory Board has established an Audit Committee, which above all monitors the financial accounting processes and the effectiveness of the internal control system, the risk management system and the internal audit system. It also supervises the audit of the financial statements, particularly the independence of the auditors and the additional services provided by them. The Committee offers a recommendation for the Supervisory Board proposal on the election of the auditor. In addition, it conducts a pre-audit of the financial reporting and considers questions related to accounting and compliance. Furthermore, the Audit Committee obtains a declaration of independence from the auditor, prepares the audit engagement resolution, thereby giving consideration to the annual audit planning, the areas of emphasis for the audit, the agreed fee and the auditor’s information obligations.