The Committee recommends:
1. The supervisory board's nomination of an auditor candidate
The Committee recommends that having consulted Executive Management, the board makes a specific and critical assessment of the auditor's independence and competence, etc., to be used in connection with the nomination of a candidate at the general meeting.
This is what Novozymes does:
Novozymes complies with this recommendation in connection with the board meeting in which the annual accounts of the preceeding year are presented for adoption by the board. Further the chairman and vice-chairman hold meetings with the auditors currently - during these meetings the auditors' independence towards Executive Management is evaluated.
2. Agreement with the auditor
The Committee recommends that the auditor agreement and the auditor's fee are agreed between the company's board and the auditor.
This is what Novozymes does:
Novozymes complies with this recommendation.
3. Non-audit services
The Committee recommends that every year, the board lays down the overall, general scope of the auditor's provision of non-audit services with a view to ensuring the auditor's independence, etc.
This is what Novozymes does:
Novozymes complies with this recommendation as part of its annual audit plan for the company.
4. Internal control systems
The Committee recommends that at least once a year, the board reviews and assesses the internal control systems within the company as well as the management's guidelines for and supervision of such systems, and that the board considers the extent to which this function is able to assist the board in this work.
This is what Novozymes does:
The board typically reviews and evaluates the recommended control systems at the board meeting in which the preceeding year's annual accounts are adopted for approval by the board and in which the external auditors also participate.
5. Accounting policies and accounting estimates
When the supervisory board reviews the annual report (or a draft of it) together with the auditor, the Committee recommends that particular efforts be made to discuss the accounting policies applied in the most important areas as well as important accounting estimates and that the expediency of the accounting policies applied be assessed.
This is what Novozymes does:
Novozymes complies with this recommendation.
6. Result of the audit
The Committee recommends that the result of the audit be discussed at meetings with the board for the purpose of reviewing the auditor's observations and opinion, possibly on the basis of the long-form audit report.
This is what Novozymes does:
Novozymes complies with this recommendation.
7. Audit committee
In companies with complex accounting and audit conditions, the Committee recommends that the board consider s establishing an audit committee to assist the board in accounting and audit matters.
This is what Novozymes does:
Novozymes complies with this recommendation and is of the opinion that there is no need at present for an audit committee to assist the board.