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 all subsidiaries included in the scope of consolidation in 2004.
The annual general meeting of 30 March 2012 extended the mandate for one year. Martin Schaad has performed the function of lead engagement partner since 2011.
The Board of Directors will propose to the annual general meeting of 5 April 2013 that Ernst & Young AG be elected as auditors for the 2013 financial year.
8.2 Auditing fees
For 2012, a total of CHF 0.31 million was billed, 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
Allreal was billed CHF 0.23 million for the drafting of the comfort letter in connection with the capital increase in May 2012 and further accounting advisory services. Otherwise, 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 pages 31 and 32 of the Annual Report.
During four weeks in the period under review, the auditors conducted audits for the half-yearly financial statements, the internal control system (ICS) and the annual financial statements. The results were discussed with the members of 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 2012 financial year contained topics such as audit focus areas and activities, details of risk assessment, material findings on IFRS 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 conveys the key findings of these discussions to the full Board of Directors.
The Risk and Audit Committee held two meetings in 2012, 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 2012 was reviewed by the Risk and Audit Committee on the basis of a budget proposal from the external auditors, adjusted and approved by the full Board of Directors.
During the period under review, the Board of Directors decided to conduct a selection process to determine the auditors to audit the annual accounts for 2013, subject to election by the annual general meeting on 5 April 2013.