8. Auditors

Ernst & Young AG, Bern, have acted as auditors of Verwaltungs- und Privat- Bank Aktiengesellschaft since 1956 (in accordance with PGR 4) and since 1994 as Group auditors of VP Bank Group. In addition, Ernst & Young AG execute the mandate as statutory auditors within the context of the Liechtenstein Banking Act (BankA Art. 37ff.). The Auditor in Charge 5, Stefan Fuchs, has been responsible for the VP Bank mandate since 2007 (annual general meeting of 27 April 2007). 

During the 2012 financial year, Ernst & Young AG charged VP Bank Group fees in the amount of CHF 1.56 million (previous year: CHF 1.77 million) for services rendered in connection with the legally prescribed audits of the annual financial statements of VP Bank and the Group subsidiaries (with the exception of Proventus Trust AG), as well as the audit of the consolidated financial statements of VP Bank Group.

Ernst & Young AG also rendered auditing-related services to VP Bank in the amount of TCHF 489.6 (previous year: TCHF 721.2). The services invoiced include support and audits in the following areas:

• advice on regulatory issues (FATCA, MiFID)
• the conduct of an efficiency analysis 
• other advisory services

The Audit & Risk Management Committee reviews the multi-year audit planning as well as the planned annual auditing activities and, in a specific agenda item, discusses these issues with the Auditor in Charge from the external auditing firm and the Head of Group Internal Audit. The Audit & Risk Management Committee attaches particular value to a risk-oriented approach in the planning and conduct of the audit, as well as a reasonable coordination of the auditing activities of the external auditors and the Internal Audit unit. 

All reports by the external auditors are reviewed at meetings of the Audit & Risk Management Committee. In 2012, the external auditors were present at all meetings of the Audit & Risk Management Committee in which external audit-related items were on the agenda. In addition, the Auditor in Charge was in attendance at a Board of Directors meeting to present and discuss the Auditors’ Report prescribed under the Banking Act.

Each year, the Audit & Risk Management Committee examines and evaluates the effectiveness and independence of the external auditors. In doing so, it relies on documents generated by the external auditors, such as the Auditors’ Report prescribed under the Banking Act, management letters, as well as oral and written statements of position on individual aspects and technical questions in connection with accounting and the audit. In addition, an annual systematic assessment is made on the basis of checklists and fee comparisons within the auditing industry. Based on this evaluation, a proposal is submitted to the Board of Directors for the attention of the annual general meeting with regard to the election of the external auditors and Group auditors.