Auditing and Internal Control System

The purpose of the audit is to increase the level of confidence among the users of financial information. The auditor employs relevant auditing procedures and methods to review the financial statements of the controlling company and the Group, and provides opinion on whether such statements comply in all material aspects with the International Financial Reporting Standards (IFRS) as adopted by the European Union, and with the provisions and requirements of the Companies Act. As a part of the audit of the financial statements, the third-parry (external) auditors report on their findings to the Management Board, Supervisory Board, and the Audit Committee of the Supervisory Board.

The company has also established internal audit department. According to organization chart it is responsible to the CEO, but it is also functionally responsible to the audit committee of supervisory board.

Internal audit provides an adequate layout and operation of the internal controls’ system and reduces risks to an acceptable level. Internal audits include business areas, business units in Slovenia and abroad and business processes throughout the Gorenje Group. In addition to regular audits the department also performs extraordinary and unannounced audits and various advisory assignments.