The Board of Directors and its Audit Committee supervise the
functioning of overall audit work. The Chairman’s Office has
primary responsibility for the supervision of Group Internal Audit,
while the Audit Committee monitors and assesses the qualification,
independence and performance of the External Auditors.
Ernst & Young Ltd, Basel, have been assigned the
mandate to serve as global auditors for UBS. They were first
appointed as UBS’s principal external auditor for the audit of
the 1998 financial statements. Since then, shareholders voting
at AGMs have annually confirmed their mandate until and
including 2004, and they will be proposed for re-election at
the AGM in 2005. The Audit Committee has determined that
Ernst & Young Ltd. meet all independence requirements established
by the US Securities and Exchange Commission (SEC).
In 2004, UBS paid Ernst & Young CHF 36.6 million for audit
services (CHF 32.2 million in 2003) and CHF 16.2 million
for non-audit services pre-approved by the Audit Committee
(CHF 19.6 million in 2003).
Group Internal Audit provides an independent review of
the effectiveness of the system of internal controls and compliance
with key rules and regulations. It has unrestricted access
to all accounts, books and records and must be provided
with all information and data required to fulfil its auditing
duties. All key issues raised by Group Internal Audit are communicated
to the management in charge, to the CEO and the
Chairman’s Office via formal Audit Reports. Group Internal Audit
employs around 255 staff members worldwide. To maximize
its independence from management, the head of Group
Internal Audit, Markus Ronner, reports directly to the Chairman
of the Board.
