Audit

Auditing forms an integral part of our corporate governance. Both internal and external auditors have a key role to play by providing an independent assessment of the Group's operations and internal controls.

Internal Audit

Our Internal Audit function comprises a team of around 250 professionals, more than 220 of whom are directly involved in auditing activities. The Head of Internal Audit, Heinz Leibundgut, reports directly to the Audit Committee.

Internal audit performs an independent and objective assurance and consulting function that is designed to add value to Credit Suisse Group's operations. Using a systematic and disciplined approach, the Internal Audit team evaluates and enhances the effectiveness of the Group's risk management, control and governance processes.

Internal Audit is responsible for carrying out periodic audits in line with the Auditing Regulations approved by the Audit Committee. It regularly and independently assesses the risk exposure of the Group's various business activities, taking into account industry trends, strategic and organizational decisions, best practice and regulatory matters. Based on the results of its assessment, Internal Audit develops detailed annual audit objectives, defining areas of focus and specifying resource requirements for approval by the Audit Committee.

As part of its efforts to achieve best practice, Internal Audit regularly benchmarks its methods and tools against those of its peers. In addition, it submits periodic internal reports and summaries to the management teams as well as to the Chairman of the Board and the Chairman of the Audit Committee. The Head of Internal Audit reports to the Audit Committee at least quarterly and more frequently as appropriate. Internal Audit coordinates its operations with the activities of the external auditor for maximum effect.

External Audit

Credit Suisse Group's statutory and group auditor is KPMG Klynveld Peat Marwick Goerdeler SA, Zurich (KPMG). This mandate was first issued to KPMG for the financial year 1989/1990. The lead Group engagement partners are: David Jahnke, Global Lead Partner (since 2005), Robert S. Overstreet, Global Engagement Partner (since 2006), and Philipp Rickert, Leading Bank Auditor (since 2006). In addition, Credit Suisse Group has mandated BDO Visura, Zurich, as special auditor for the purposes of issuing the legally required report for capital increases in accordance with Article 652f of the Swiss Code of Obligations.

The Audit Committee monitors and pre-approves the fees paid to KPMG for its services.

KPMG attends all of the meetings of the Audit Committee, at which it reports on the findings of its audit and/or review work. The Audit Committee reviews on an annual basis KPMG's audit plan and evaluates the performance of KPMG and its senior representatives. Moreover, the Audit Committee recommends to the Board the appointment or replacement of the external auditor, subject to shareholder approval - as required by Swiss law.

KPMG provides a report about its independence to the Audit Committee at least once a year. In addition, Credit Suisse Group's policy on the appointment of public accounting firms - which has been approved by the Audit Committee - strives to further ensure an appropriate degree of independence of its external auditor. The policy limits the scope of services that may be provided to Credit Suisse Group or any of its subsidiaries by KPMG to audit and certain permissible types of non-audit services, including audit-related services, tax services and other services that have been pre-approved by the Audit Committee. The Audit Committee pre-approves all other services on a case-by-case basis. KPMG is required to periodically report to the Audit Committee about the scope of services it has provided and its fees for the services it has performed to date.