115
ANNUAL REPORT AND CONSOLIDATED ACCOUNTS 2013
As regards risk in the process of financial information
disclosure, only a restricted number of employees is in-
volved in the disclosure process. All those who are in-
volved in the process of financial analysis of the Compa-
ny are considered to have access to inside information
and are specially informed of their obligations.
The system of internal control of the recording, prepa-
ration and disclosure of financial information rests on
the following key elements:
– the use of accounting principles, as set forth in the
notes to the accounts, is one of the bases of the con-
trol system
– the plans, procedures and records of the Company
and its subsidiaries offer a reasonable guarantee that
only duly authorized transactions are are recorded
and that they are recorded in accordance with gener-
ally accepted accounting principles
– the financial information is analysed systematically
and regularly by business unit management (support-
ed by the Management Control Department) and by
the heads of the profit centres, ensuring continuous
monitoring and the necessary budgetary control
– a timetable is established for the preparation and
review of information, the work is divided up among
the various areas involved and all the documents are
reviewed in detail. This includes a review of the prin-
ciples used, verification of the accuracy of the infor-
mation produced and a check of consistency with the
principles and policies used in previous years
– the accounting records and the preparation of the
financial statements are overseen by the central ac-
counting function. The financial statements are pre-
pared by the accountants and are reviewed by the
Administrative Unit.
– The consolidated financial statements are prepared
on a quarterly basis by the central consolidation func-
tion, which conducts an additional reliability check
– The financial information, annual report and financial
statements are reviewed by the Financial Unit and sub-
mitted to the Board of Directors for final review and
approval. Once the documents have been approved,
they are sent to the external auditor, which issues its
audit report and opinion.
– The statutory auditor carries out an annual audit and a
half-yearly limited review of the individual and consol-
idated accounts. Also, each quarter it conducts a sum-
mary examination of the quarterly information.
– The process of preparation of the individual and con-
solidated financial information and of the manage-
ment report is supervised by the Audit Committee and
the Board of Directors. At quarterly intervals these
bodies meet and analyze the individual and consoli-
dated financial statements and management report.
Among the causes of risk that may materially affect fi-
nancial reporting are the accounting estimates, which
are based on the best information available and on the
knowledge and experience of past and current events.
Balances and transactions with related parties are dis-
closed in the annex to the financial statements and are
associated above all with the Group’s operating activ-
ities and its lending and borrowing, which is done at
market prices.
