Consists of four of the board of directors' nine members. The audit committee meets Norwegian requirements regarding independence and competence.
The audit committee assists the board of directors relating to the integrity of the company's financial statements and financial reporting processes and internal controls; the company's risk assessment and risk management policies related to financial reporting; the qualifications, independence and performance of the external auditor; and the performance of the internal audit function related to internal controls over financial reporting.
To ensure the independence of the internal audit function, the head of Internal Audit reports functionally to the board through the audit committee.
The audit committee maintains a pre-approval policy governing the engagement of the company's primary and other external auditors to ensure auditor independence.
See page 160-161 in Hydro's Annual Report 2014 for developments in 2014.