The company’s auditor is normally appointed by the shareholders’ meeting to examine the company’s annual accounts and accounting practices and to review the board’s and the chief executive officer’s management of the company.

In the case of parent companies, the auditor is also to examine the consolidated accounts. Auditors of Swedish companies are therefore given their assignment by, and are obliged to report to, the owners, and they must not allow their work to be governed or influenced by the board or the executive management.

Auditors present their reports to the owners at the annual general meeting in the annual audit report. The audit report must contain a statement on whether the annual report has been compiled in accordance with the relevant legislation. The statement is to specify whether the annual report provides an accurate picture of the company’s results and position and whether the director’s report is consistent with the rest of the annual report.

If the annual report does not include items that are required by the relevant legislation, the auditor must state this and, if possible, provide the necessary information in the audit report. Part of the auditor’s assignment is to recommend whether the shareholders’ meeting should adopt the balance sheet and income statement and whether the company’s profit or loss should be appropriated in accordance with the proposals in the director’s report.

The auditor is also obliged to report if any member of the board or the chief executive officer has carried out any action or committed any oversight that may result in liability for damages. The same applies if the auditor has found that any member of the board or the chief executive officer has acted in any other way that is in breach of the Companies Act, the relevant legislation on annual accounts or the company’s articles of association.