The Group’s control structure is designed to manage the risks that the Board considers to be of material importance for internal control over financial reporting.
Within Axfood these control structures consist of an organization with clear roles that enable the effective and suitable delegation of responsibility from an internal control perspective as well as specific control activities that are designed to discover or prevent risks for errors in the reporting in a timely fashion. Examples of control activities include clear decision-making processes and procedures for important decisions, performance analyses and other control activities within the processes involving revenues/receivables, purchasing/payments, noncurrent assets, inventories, salaries, VAT/taxes, finance, accounting, consolidation/reporting, and master data. Examples of
control activities in these processes are spot checks, reconciliations and reviews of undertakings. Process reviews are conducted with the functions in Axfood’s Shared Services Centre (SSC), and also of individual companies at the subsidiary level.
Work during the year
During 2019, focus remained on reviews of new and existing flows and controls coupled to financial reporting. A focus area for expanded review was selected to strengthen internal control specifically in this area. During 2019, reporting of leases in accordance with the new IFRS was chosen as a focus area.