Audi 2009 Annual Report Download - page 172

169
Management Report
132 Audi Group
140 Business and
underlying situation
153 Financial performance
indicators
157 Social and ecological aspects
168 Risks, opportunities
and outlook
168 Risk report
174 Report on post-balance sheet
date events
174 Report on expected
developments
177 Disclaimer
cial reporting purposes is furthermore supported by the Group audit involving the conducting of
examinations both in Germany and abroad.
Group Accounting at AUDI AG started to use the Volkswagen Consolidation and Corporate Steer-
ing System (VoKUs) in 2009 in close consultation with Volkswagen AG (Wolfsburg). Planning
functions are currently being added to it.
The purpose of the overall project is to create an even more effective integrated Group system
that will permit the consolidation and analysis of data from both Accounting and Controlling.
VoKUs is therefore assuming the guise of a platform that will assure a uniform reporting system
and the greatest possible flexibility of response to changes in the legal framework, as well as a
central system for master data management. Group Accounting and Group Controlling stand to
benefit from it in equal measure.
VoKUs furthermore offers various functions that minimize potential sources of error within the
financial reporting process. For instance, to check data consistency it includes a multi-stage
validation system that in essence has the purpose of checking the completeness of the incoming
data material and cross-checking the content of the Balance Sheet and Income Statement. Vo-
KUs furthermore assists with the conducting of other plausibility checks on the data material.
Risk management and updating of the risk documentation in accordance with the
German law on control and transparency in the corporate sector (KonTraG)
The risk exposure of the Audi Group is documented in line with the requirements of the German
law on control and transparency in the corporate sector (KonTraG). On a half-yearly basis a stan-
dardized risk survey is conducted of the individual AUDI AG divisions and subsidiaries from which
risks that could potentially threaten the parent company as a going concern could spread. Prob-
abilities are estimated for all individual risks by each of the risk reporters and anticipated losses
from the risk are then quantified on the basis of the lost profit contribution or the costs in-
curred. Furthermore, all necessary measures and precautions are taken to prevent an identified
risk from materializing. In addition to the half-yearly survey, all risk management officers are
moreover required to enter short-term changes in the risk exposure into the risk documentation
in the form of ad hoc announcements. Based on the risk reports updated in this way, a risk pro-
file is thus obtained for the Audi Group that reflects the significant risks it faces. The Board of
Management and the Supervisory Board are regularly informed of the current risk situation
within the Audi Group.
The plausibility and appropriateness of the risk reports are examined on a test basis in more in-
depth interviews conducted by the independent auditors with the appropriate divisions and
companies. Based on this data scope, the independent auditor has now assessed the effective-
ness of the Audi Group’s risk management system and established that identified risks have
been suitably presented, and that comprehensive, appropriate measures have been assigned to
them. The Audi Group thus satisfies the requirements of KonTraG.
Ongoing examination and refinement
As a learning organization, the Audi Group is eager to subject the processes of both its internal
control system for financial reporting purposes and its risk management system to ongoing
examination and optimization. The findings obtained from both internal and external audits, as
independent bodies monitoring their correctness and effectiveness, provide the basis for con-
tinuous improvements. The aim is to comprehensively satisfy the growing statutory and operat-
ing requirements of risk management and to continually assure the early identification of risks
and effective means of steering and monitoring them in the departments responsible. Reports
on the above processes are submitted to the Board of Management and Supervisory Board of
AUDI AG both according to a regular cycle and ad hoc.