The company's auditor is appointed by the shareholders’ meeting to examine the company's annual report and accounts, as well as the stewardship of the board and the chief executive officer. If the company is a parent company, the auditor is also to examine the consolidated accounts. An auditor in a Swedish company is thus given its assignment by and reports to the shareholders’ meeting and may not allow its work to be influenced by the board or management of the company.
The auditor’s reporting to the owners takes place at the shareholders’ meeting through the audit report. The audit report is to contain a statement on whether the annual report has been prepared in accordance with the applicable law on annual accounts. The statement is to say in particular whether the annual report gives a true and fair view of the company's results and financial position, and whether the management report is consistent with the other parts of the annual report.
If the annual report has not provided such information as is to be submitted in accordance with the applicable legislation on annual accounts, the auditor is to state this and, if possible, provide the necessary information in the audit report. The auditor's duties include recommending whether the shareholders’ meeting should approve the balance sheet and income statement and whether appropriation of the company's profit or loss should be made according to the proposal in the management report.
The auditor is also to report whether any board member or the chief executive officer has taken any action or been guilty of any negligence that may result in liability for compensation. The same applies if the auditor has found in the audit that any board member or the chief executive officer has in any other way acted in contravention of the Companies Act, the applicable legislation on annual accounts or the company’s articles of association.