The board elects up to four of its members to serve on the audit committee. The current members of the audit committee are Kurt Anker Nielsen (chair), Marit Arnstad, Roy Franklin and Morten Svaan.
The audit committee is a sub-committee of the board of directors and its objective is to carry out more thorough assessments of specific matters in the StatoilHydro group and report to the board of directors. The audit committee is instructed to assist the board in its supervising of issues such as:
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the quality and integrity of the company's financial statements and related disclosures
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the external auditor's qualifications and independence
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the performance of the external auditor pursuant to the requirements of Norwegian law and the laws of those countries where the company is listed on the stock exchange
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the performance of the company's internal audit function, internal controls and risk management systems
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the company's compliance with legal and regulatory requirements, including the requirements relating to listing on stock exchanges and
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compliance with the group's ethical rules, including the group's compliance activities relating to corruption.
The internal audit function reports directly to the board of directors and to the chief executive officer. The audit committee assists the board in overseeing this function. The audit committee also receives regular briefings and reports on internal control and ethical issues.
Under Norwegian law, our external auditor is elected by our shareholders at the annual general meeting. The audit committee makes a recommendation to the board of directors concerning the appointment of the external auditor based on its evaluation of the qualifications and independence of the auditor proposed for election or re-election. The audit committee meets at least six times a year, and it meets separately with the internal auditor and the external auditor on a regular basis.
The audit committee is also charged with reviewing the scope of the audit and the nature of any non-audit services provided by external auditors. The external auditors report directly to the audit committee on a regular basis. The audit committee also has procedures for receiving and dealing with complaints received by the company regarding accounting, internal controls or auditing matters and for the confidential, anonymous submission by employees of the company of concerns regarding accounting or auditing matters. The audit committee has the authority to engage independent advisers to assist it in carrying out its duties.
The audit committee held eight meetings in 2008. There was 97% attendance at the committee's meetings.
