Novo Nordisk’s financial reporting and the internal controls over financial reporting processes are audited by an independent external audit firm elected annually by the shareholders at the Annual General Meeting. As part of Novo Nordisk’s commitment to its social and environmental responsibility, the company includes an assurance report for ESG statements (social and environmental performance) in its annual report. The assurance provider reviews whether the ESG statements (social and environmental performance information) covers aspects deemed to be material, and verifies the internal control processes for the information reported.
In 2021, the Annual General Meeting appointed Deloitte Statsautoriseret Revisionspartnerselskab (“Deloitte”) as Novo Nordisk's external auditor. Due to legal requirements, Novo Nordisk’s auditor must be rotated at the Annual General Meeting in 2021. In 2019, the Board of Directors initiated the process of selecting the new candidate to be proposed for appointment as new auditor in 2021. The selection procedure was organised in accordance with Article 16 of the EU Audit Regulation (Regulation (EU) No. 537/2014). Consequently, at the Annual General Meeting in 2021 Deloitte replaced PricewaterhouseCoopers, who has been Novo Nordisk’s external auditor since 1982.
The auditor acts in the interest of the shareholders, as well as the public.
The external auditor reports any significant findings regarding accounting matters and any significant internal control deficiencies via the Audit Committee to the Board of Directors and in the auditor's long-form report.
A more detailed management report on internal controls and
accounting issues is provided to Executive Management. The Audit
Committee supervises the annual audit process, which includes meetings
with the external auditor.
In order to safeguard independence and objectivity the Audit Committee pre-approves services to be provided by the statutory external auditor. The statutory external auditor is restricted from providing certain non-audit services and the lead partner is required to rotate every five years.
The internal audit function, group internal audit, provides independent and objective assurance primarily within internal control of financial processes, IT and business ethics. To ensure that the internal financial audit function works independently of Executive Management, its charter, audit plan and budget are approved by the Audit Committee. The Audit Committee must approve the appointment, remuneration and dismissal of the head of the internal audit function.