02. PRISA, a global group Annual Report 2013 access control, segregation of duties, deve-lopment or modification of computer applications and management controls over the outsourced activities. The Group annually 36 reviews and evaluates controls and procedures associated with the major applications that support the critical business processes. Information and communication The Group had implemented control measures to ensure that the data backup of financial information is collected in a complete, accurate and timely basis. The organization has an accounting manual of the International Financial Reporting Standards applicable to the Group’s businesses, defined by the Internal Audit Department, regularly updated and communicated to the different business units. There is also a system of financial reporting with a single and homogeneous format, applicable to all Group units, which supports the financial statements and notes and disclosures included. In addition, the Group has control procedures to ensure that the information issued to the market includes enough disclosures to facilitate proper understanding and interpretation by users. System’s monitoring and operation The Group has an internal audit unit, which supports the Group Audit Committee in monitoring internal control system over financial reporting. The main objective of internal audit is to provide Group management and the Audit Committee of reasonable assurance that the environment and internal control systems operating within the Group companies have been properly designed and managed. For those purpose, during the fiscal year 2011 internal audit has coordinated and supervised the design and scope of the Group’s internal control system over financial reporting, and subsequently has carried out the evaluation of the design and operation of control activities defined in the model, in order to certify its effectiveness in accordance with the Sarbanes-Oxley Act. Accordingly, internal audit supervises the design and scope of the internal control model over financial reporting of the Group, and subsequently carries out the evaluation of the design and operation of control activities defined in the model, in order to certify its effectiveness in accordance with the Sarbanes-Oxley Act. For each of the identified weaknesses is done an estimation of the economic impact and probability of expected occurrence, classifying it according to them. Also, for all the identified weaknesses is defined a plan of action to correct or mitigate the risk and a responsible for the management. The significant deficiencies and material weaknesses that would have been revealed as a result of the internal audit’s assessment of the of internal control system over financial reporting, are reported to both the Audit Committee and the external auditor. Additionally, ultimately, the internal control system is reviewed by the Group’s auditor, who reports to the Audit Committee and gives its opinion on the effectiveness of internal control over financial reporting contained in the Group’s consolidated financial statements, in order to record the financial information filed with the Securities and Exchange Commission. As part of the monitoring activities of the internal control system carried out by the Audit Committee, described in the Regulations of the Board of Directors posted on Group’s the website, it is included the following in connection with the preparation and publication of the financial information: 1. Review compliance with legal requirements and the correct application of generally accepted accounting principles, and report on the proposed changes to accounting principles and criteria suggested by management. 2. Know and monitor the effectiveness of the Company’s internal control systems, and risk management systems and discuss with the auditors or audit firms significant weaknesses in internal control system identified in the audit’s development. 3. Monitor the process of preparation and presentation of regulated financial information. 4. Review the issue and admission to trading of the securities of the Company prospectus and information on the financial statements quarterly and half to be supplied by the Council to markets and their supervisory bodies.
PRISA Annual Report 2013
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