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 policies used
in previous years.
- The accounting records and the preparation of the financial statements are overseen by
the central accounting function. The financial statements are prepared by the account-
ants 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 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 consolidated accounts. Also, each quarter it conducts a summary exami-
nation of the quarterly information.
- The process of preparation of the individual and consolidated financial information
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 accounting
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 dis-
closed in the annex to the financial statements and are associated above all with the Group’s
operating activities and its lending and borrowing, which is done at market prices.
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