Annual Report and Consolidated Accounts 2015
the non-executive director of the Company, reporting functionally to that director,
independently of the departments’ reporting relationship with the Company’s ex-
ecutive management.
External audit assesses and reports on the reliability and integrity of accounting
and financial information, validating the internal control system established in the
Group and the effectiveness of the separation between the persons who prepare
the information and those who use it and carrying out various validation procedures
throughout the financial information preparation and disclosure process.
The external auditor meets with the different departments of the Group, at least
twice a year to analyze and review the internal control system, submitting a re-
port to the Audit Committee for subsequent discussion with the Board of Directors,
namely with the non-executive director.
As regards risk in the process of financial information disclosure, only a restricted
number of employees is involved in the disclosure process. All those who are in-
volved in the process of financial analysis of the Company are considered to have
access to inside information and are specially informed of their obligations.
The system of internal control of the recording, preparation and disclosure of finan-
cial 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 control system.
- the plans, procedures and records of the Company and its subsidiaries offer a rea-
sonable guarantee that only duly authorized transactions are are recorded and that
they are recorded in accordance with generally accepted accounting principles.
- the financial information is analysed systematically and regularly by business unit
management (supported by the Management Control Department) and by the
heads of the profit centres, ensuring continuous monitoring and the necessary
budgetary control.
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