8   Auditors

8.1     Duration of the mandate and term of office of the lead auditor

The auditors are elected each year by the annual general meeting. KPMG AG took on the audit mandate for Allreal Holding AG and the other Allreal companies in 2004.

The annual general meeting of 25 March 2011 extended the mandate for one year. With effect from this date, Martin Schaad newly assumed the function of lead engagement partner.

8.2     Auditing fees

For 2011, a total of CHF 0.26 million was charged, covering the fees for auditing the consolidated annual accounts, the statutory individual accounts of all Allreal companies and the review for the half-yearly financial statements.

8.3     Additional fees

No further services were required from KPMG AG.

8.4     Information tools pertaining to an external audit

The Risk and Audit Committee maintains an exchange of information with the external auditors within the scope of the tasks described on page 29 of the Annual Report.

During four weeks in the period under review, the auditors shall conduct audits for the half-yearly financial statements, the internal control system (ICS) and the annual financial statements. The results are discussed with the members of the Group management.

In addition to the statutory report to the annual general meeting, the auditors also prepare a comprehensive report to the Board of Directors which, together with further findings and proposals for improvement, is presented to a meeting of the Risk and Audit Committee and discussed in detail. Specifically, the report for the 2011 financial year contained topics such as audit focus areas and activities, details of risk assessment, material findings on accounting and reporting, the internal control system (ICS) as well as the impact of IFRS amendments and future developments. The Chairman of the Risk and Audit Committee will convey the key findings of these discussions to the full Board of Directors.

The Risk and Audit Committee held two meetings in 2011, with representatives of the external auditors taking part in discussions of individual points on the agenda at both meetings.

The amount of the auditing fee for 2011 was reviewed by the Risk and Audit Committee on the basis of a budget proposal from the external auditors and was approved by the full Board of Directors.

During the period under review, no selection processes were undertaken to appoint new external auditors.

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