In December 2002, the Board established an Audit Committee primarily for the purpose of overseeing the accounting and financial reporting processes and the audit of the financial statements.

The Audit Committee is responsible for preparing the Board’s work to assure the quality of the Group’s financial reporting by reviewing the interim reports, the Annual Report and consolidated accounting. In addition, the Audit Committee’s task is to establish guidelines specifying what other services, beyond auditing, the company may procure from the company’s auditors and to provide guidelines for transactions with companies and persons closely associated with Volvo. The Audit Committee also has the task of reviewing and overseeing the impartiality and independence of the company’s auditor. The Audit Committee is also responsible for evaluating the internal and external auditors’ work, providing the Election Committee with the results of the evaluation of the external auditors and to assist in preparing proposals for the election of auditors. Finally, the Audit Committee shall evaluate the quality, relevance and efficiency of the Group’s system for internal control over financial reporting, and with respect to the internal audit and risk management.

At the statutory Board meeting following the 2011 Annual General Meeting, Lars Westerberg, Peter Bijur and Jean-Baptiste Duzan were appointed members of the Audit Committee. Lars Westerberg was appointed Chairman of the Audit Committee.

The Audit Committee met with the external auditors and Head of Internal Audit at the meetings of the Audit Committee. The Audit Committee has also met separately with the external auditors and the Head of Internal Audit without the presence of the company management. The Audit Committee and the external auditors have, among other tasks, discussed the external audit plan and risk management. The Audit Committee held eight meetings during 2011.