Audi 2012 Annual Report Download - page 188

191
Management Report
140 Audi Group
151 Business and underlying
situation
173 Financial performance
indicators
176 Social and ecological aspects
190 Risks, opportunities
and outlook
190 Risk report
197 Report on post-balance sheet
date events
197 Report on expected
developments
201 Disclaimer
RISK MANAGEMENT WITHIN THE AUDI GROUP
Integrated internal control and risk management system for
the financial reporting process
The aim of the internal control process for financial reporting is to minimize or eliminate alto-
gether the risk of misstatements both in the bookkeeping and in external reporting. The internal
control process for the Audi Group comprises measures and checks that guarantee the complete,
prompt and accurate communication of all information needed for the preparation of its Con-
solidated Financial Statements and Group Management Report.
Within the Audi Group, the accounting system is a fundamentally decentralized organization. In
individual instances, tasks may be transferred by the subsidiaries’ accounting departments to
AUDI AG on the basis of service agreements. The individual financial statements of AUDI AG and
the subsidiaries are prepared in compliance with the national accounting standards applicable in
each case. For AUDI AG, the fully consolidated Group companies and the equity investments,
these are then adopted into IFRS consolidated financial statements. A commercial encryption
product is used to assure data security during data transfer to Group Accounting at AUDI AG.
The Audi Group accounting guideline maintains uniformity in the recognition and measurement
principles based on the IFRS rules applicable to the parent company. Further Group-wide accounting
standards define the reporting scopes and the consolidated companies included in the Consolidated
Financial Statements, as well as the application of statutory requirements. The correct reporting
of intra-Group business transactions is regulated in detail by proven instruments and processes
such as the reconciliation of balances between the Group companies.
Non-central risk managers
Central Risk Management
Transparency
Risk inventory – Risk evaluation –
Risk early warning – Risk culture
Steering
Risk avoidance – Risk minimization –
Risk reporting – Risk monitoring