Before being presented to the General Meeting for adoption, the annual Financial Statements as prepared by the Executive Board must be examined by an external certified public auditor. The General Meeting has the authority to appoint the auditor. Each year the Supervisory Board nominates the auditor for (re)appointment by the General Meeting, taking into account the advice of the Audit Committee. The auditor’s assignment (including his remuneration) is approved by the Supervisory Board, on the recommendation of the Audit Committee.
Prior to publication, the quarterly Financial Statements and quarterly reports are discussed with the Audit Committee, in the presence of the external auditor, in preparation for consideration by the Supervisory Board. The external auditor attends the meetings of the Supervisory Board in which the annual and half-year Financial Statements are to be approved and the audit report of the external auditor is discussed.
The ARCADIS Policy on Auditor Independence contains rules and procedures for the engagement of the external auditor, in order to ensure its independence. According to these procedures, the Audit Committee must approve all audit, audit related and permitted non-audit services to be provided by the external auditor.
The Audit Committee annually evaluates the functioning of the external auditor, in consultation with the Executive Board, and the outcome is reviewed by the Supervisory Board. Also the desirability of rotating the external auditor’s partners is evaluated. ARCADIS changed partners in 2001, 2006 and 2008.
ARCADIS has an internal audit function which operates under the responsibility of the Executive Board, with reporting lines to the CEO, CFO and the Audit Committee. The scope of work of the internal audit function is regulated in an Internal Audit Charter. The external auditor and the Audit Committee are involved in the preparation and approval of the annual internal audit plan. Internal Audit Reports are discussed with the Audit Committee in the presence of the external auditor.
The quarterly financial reports are discussed with the AAC in preparation for the consideration by the Supervisory Board. This is done prior to the publication of the quarterly results and in the presence of the external auditor. The external auditor also attends certain meetings of the Supervisory Board to report on his audit or findings regarding the (interim) accounts.