8. Auditors

Ernst & Young Ltd, Berne, has acted as auditor of VP Bank since 1956 (in accordance with PCA) and since 1994 as Group auditor of VP Bank Group. In addition, Ernst & Young Ltd undertakes the mandate as Banking-Law auditor pursuant to the Liechtenstein Banking Act (BankA Art. 37 ff.). The Auditor-in-Charge, Bruno Patusi, has been responsible for the VP Bank mandate since 2014 (annual general meeting of 25 April 2014).

In 2017, Ernst & Young Ltd, Berne, charged VP Bank Group fees in the amount of CHF 1.47 million (previous year: CHF 1.45 million) for services rendered in connection with the legally prescribed audits of the annual financial statements of VP Bank and its Group subsidiaries, as well as the audit of the consolidated financial statements of VP Bank Group.

Ernst & Young Ltd also provided audit-related as well as advisory services to VP Bank in the amount of CHF 0.24 million (previous year: CHF 0.21 million).

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

All reports by the external auditors are reviewed at the meetings of the Audit Committee. In 2017, the external auditors were present at all meetings of the Audit Committee in which external audit-related items were on the agenda. In addition, the Auditor-in-Charge was in attendance at the Board of Director’s meeting to present and deal with the Banking-Law Auditors’ Report.

Each year, the Audit Committee examines and evaluates the effectiveness and independence of the external auditors. In this process, it bases itself 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 issues and technical questions in connection with financial-statement reporting and the audit. Furthermore, a systematic annual assessment is made on the basis of checklists and fee comparisons within the auditing segment. Based on this evaluation, a motion is submitted to the Board of Directors for the attention of the annual general meeting as regards the election of the external auditors and Group auditors.