8. Auditors

Ernst & Young AG, Bern, have acted as auditors of Verwaltungs- und Privat-Bank Aktiengesellschaft since 1956 (in accordance with PGR4) and since 1994 as Group auditors of VP Bank Group. In addition, Ernst & Young AG undertake the mandate as bank law auditors within the context of the Liechtenstein Banking Act (BankA, Art. 37 ff.). The Auditor in Charge, Stefan Fuchs, has been responsible for the VP Bank Group mandate since 2007 (annual general meeting of 27 April 2007). 

In 2013, Ernst & Young AG charged VP Bank Group fees in the amount of CHF 1.68 million (previous year: CHF 1.56 million) for services rendered in connection with the legally prescribed audits of the annual financial statements of VP Bank Group and the Group subsidiaries, 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 Group in the amount of TCHF 211.7 (previous year: TCHF 489.6). 

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 with the auditor in charge from the external auditing firm as well as with the Head of Group Internal Audit. The Audit & Risk Management Committee attaches particular importance to a risk-oriented approach in the planning and conduct of the audit, as well as to an appropriate coordination of the auditing activities of the external auditors with those of Internal Audit. 

All reports issued by the external auditors are reviewed at meetings of the Audit & Risk Management Committee. In 2013, 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. For this purpose, it relies on documents generated by the external auditors, such as the auditors’ report prescribed in 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 systematic annual assessment is made on the basis of checklists and fee comparisons within the auditing sector. Based on this evaluation, a proposal for the election of the external auditors and Group auditors is submitted to the Board of Directors, for the attention of the annual general meeting.