Corporate Governance Report
- 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 principles used, verification of the accuracy
of the information produced and a check of consistency with the principles and poli-
cies used in previous years.
- the accounting records and the preparation of the financial statements are over-
seen by the central accounting function. The financial statements are prepared by
the accountants and are reviewed by the Administrative Unit.
- The consolidated financial statements are prepared on a quarterly basis by the
central consolidation function, which conducts an additional reliability check;
- The financial information, annual report and financial statements are reviewed by
the Financial Unit and submitted to the Board of Directors for final review and ap-
proval. Once the documents have been approved, they are sent to the external au-
ditor, which issues its audit report and opinion.
- The statutory auditor carries out an annual audit and a half-yearly limited reviewof
the individual and consolidated accounts. Also, each quarter it conducts a summary
examination of the quarterly information.
- The process of preparation of the individual and consolidated financial informa-
tion and of the management report is supervised by the Audit Committee and
the Board of Directors. At quarterly intervals these bodies meet and analyze
the individual and consolidated financial statements and management report.
Among the causes of risk that may materially affect financial reporting are the ac-
counting estimates, which are based on the best information available and on the
knowledge and experience of current and past events. Balances and transactions
with related parties are disclosed in the annex to the financial statements and are
associated above all with the Group’s operating activities and its lending and bor-
rowing, which is done at market prices.
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