8   Statutory auditors

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

The annual general meeting of 28 April 2014 elected Ernst & Young AG as auditors of Allreal Holding AG and all affiliated companies included in the scope of consolidation for the 2014 financial year.

Daniel Zaugg, Audit Partner, has performed the function of lead engagement partner since 2013.

8.2     Audit fees

For 2014, audit fees of CHF 0.31 million were agreed, covering the remuneration for auditing the consolidated annual accounts, the statutory individual accounts of all Allreal companies and the review for the half-yearly financial statements, as well as for issuing audit confirmations for conditional capital increases and the compensation report.

8.3     Additional fees

No additional services were required from Ernst & Young 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 35 and 36 of the Annual Report.

During five 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 2014 financial year contained topics such as audit focus areas and activities, details of risk assessment, material findings on IFRS accounting and reporting, audit differences, the internal control system (ICS) as well as the impact of IFRS amendments and Switzerland’s new financial reporting law. 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 2014, 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 2014 corresponds to a budget proposal submitted by the external auditors for a three-year period from 2013 to 2015, subject to re-election by the annual general meeting.