Follow-up

The Board of Directors of Morphic holds ultimate responsibility for internal control and ensures compliance with the internal control framework. The Board has assessed the need for a special audit function (internal audit), and decided that such a function is not required at present. Instead, the examination has been performed by executives that also have other duties in the company. However, the issue is reviewed each year, in accordance with the rules of procedure for the Board.

The Board regularly receives financial statements, and the Group’s financial position and development are discussed at each meeting. The Board’s Audit Committee examines all quarterly reports and the year-end financial statements before they are published externally. Based on management’s reports and the observations of the Audit Committee, the Board forms an opinion of the company’s control environment, organization, responsibilities and authority as well as the completeness of financial reporting.