Axfood continuously updates its risk analysis pertaining to the assessment of risks that could lead to errors in financial reporting. As a result of its annual review, the Board makes decisions on which risks are essential to take into account in order to ensure satisfactory internal control over financial reporting.
In the course of its risk reviews, Axfood identifies numerous items in the financial statements, as well as administrative flows and processes, where there is an elevated risk for errors. Risks are addressed, assessed and reported by Axfood centrally in cooperation with the Group companies. In addition, risks are addressed in special forums, such as in questions raised by Axfood’s establishment and financing committee in connection with store establishment and acquisitions.
Risk reviews conducted in 2019 identified the following areas, among others: robotic processes in financial flows and financial reporting, large projects within the Group, such as automation and dark stores, and processes and routines for reporting and follow-up of accounting for leasing in accordance with a new standard, IFRS 16. In addition, work continued with internal control with respect to the structure of authorizations, roles and limitations in the combination of roles, both with respect to operational roles and IT roles. A recurring focus was also on updates of the functionality of SAP that affect the financial reporting.