Audit Commitee

The Board of Directors appoints from its members an Audit Committee that formulates issues concerning accounting, auditing and internal control. The members of the Audit Committee are appointed annually at the statutory Board meeting immediately following the Annual General Meeting.

The Audit Committee is responsible for the preparation of the Board’s activities by creating a system for auditing, internal control and risk management that fulfills the requirements of applicable laws and regulations and for ensuring that this system promotes operational efficiency, generates accurate accounting documents and provides reliable financial information. The Committee reviews the principles for accounting and financial control and establishes guidelines for the procurement of services other than auditing from the Company’s auditors. The Committee meets regularly with the auditors during the year to discuss audit reports and audit plans. The Committee is responsible for the evaluation of the auditors’ work and the auditors’ efficiency, qualifications, fees and independence.

The Audit Committee must also assist the Nomination Committee with proposals for potential auditors, which will be resolved during the Annual General Meeting. The Committee also assists Haldex management in determining how identified risks will be handled in order to ensure good internal control and risk management.

During 2007, its members were Anders Böös, Arne Karlsson and Caroline Sundewall. Caroline Sundewall was the Committee’s Chairman. Sune Karlsson was co-opted to the Committee. The Committee held four meetings during 2007.