Sweden falls further in line with EU

It is now mandatory for listed companies to
have an audit committee.

Helene Agelii from Swedish professional
services institute FAR SRS told The Accountant the
implementation of audit committees adds more responsibilities for
external auditors. They must now report to the audit committees,
particularly regarding issues such as internal control. Also, if an
auditor finds themselves in a situation where their impartiality
and independence could be questioned, they must discuss it with the
audit committee.

Agelii said many Swedish listed companies
already have audit committees. The significant change is the
requirement that the audit committee oversees the auditor.

“We think it sounds a little strange. In our
opinion it is the auditor that oversees the board and not the other
way around” she said.

Other amendments to Swedish law that will
become effective in July introduce requirements regarding
transparency reports, auditor rotation and quality reviews.

Agelii does not expect these changes to have
much impact on the Swedish profession.

FAR SRS has welcomed the fact that the
amendments follow the basic EC requirements and do not add more
administrative burdens.