Audit

The auditing of financial statements of the controlling company and the majority of ist subsidiaries is conducted by the KPMG auditing company. The Company observes the recommendations of the Corporate Governance Code for Public Limited Companies regarding the changing of auditors every three years. The proposal for the selection of an auditor for the 2011 financial year was prepared by the Audit Committee, and the Supervisory Board proposed ist appointment to the General Meeting of Shareholders.

The external auditor reports on its findings to the Management Board, the Supervisory Board, and the Audit Committee.

The transactions of the parent company and the Gorenje Group with the company KPMG Slovenija, podjetje za revidiranje, d.o.o., and the transactions of the group companies with individual auditing companies are presented in the Notes to the Financial Statements.

In the second half of the year, we initiated procedures for the reorganisation of internal audit. The primary goals of the reorganisation are to increase the efficiency of its operation through staff development, increased autonomy of operations, and the attainment of excellence.