The purpose of internal control over financial reporting is to ensure the correctness of financial reporting, including interim and annual reports, and the compliance of financial reporting with regulatory requirements. Tieto’s Audit and Risk Committee has the oversight role in Tieto’s external financial reporting.

Financial reporting process and responsibilities
Tieto has a common accounting and reporting platform, Tieto ERP. Group consolidation and reporting are based on the reporting system, which facilitates common control requirements for all cost centres and legal entities reporting to the Group. Financial reporting consists of monthly performance reports, including all the key performance indicators, rolling forecasts and interim financial reports.

On the operational level, Tieto Finance includes global services, country units and group reporting. The Global Services function is in charge of centralized shared finance operations and the development of common finance processes and tools. It also has ownership of finance policies and rules. The Global Services function is also responsible for process performance and operational compliance. Tieto has documented the key financial process flows, such as order to cash, purchase to pay, record to report, master data management and accounting system access and role management. Each process is headed by a process owner.

Finance Country Units are responsible for implementing global practices, processes, tools, policies and rules in local operations. They are also responsible for executing local requirements set by authorities.

Tieto’s Group Reporting function provides leadership and coordination of financial reporting and ensures that accounting procedures conform to generally accepted accounting principles. It serves as the key legislative liaison for the Group’s financial issues and executes operative follow-up of the adequacy and effectiveness of control activities.
Information and releases concerning the internal financial guidelines and schedules are available on Tieto’s intranet to all employees concerned. All the financial processes described are available in the company’s W2E business system.

Monitoring activities of financial reporting
Financial reports are regularly reviewed by the Leadership Team and the Board. The follow-up is based on a thorough comparison of the actual figures with the set objectives, forecasts and previous periods. If the figures deviate, the Leadership Team members are responsible for initiating corrective actions.

The Audit and Risk Committee can assign individual audit engagements to  the company’s internal audit function related to the internal control and risk management systems of the financial reporting process. The committee also reviews interim and annual reports. Tieto’s Board of Directors approves the financial reports.