Chrysler 2011 Annual Report Download - page 343

342 Reports of
the Board of
Statutory
Auditors
aspects relative to the independence of the audit firm, with particular reference to non-audit services provided to the audited entity.
Accordingly, we note that on 27 February 2012 we received a communication from Deloitte & Touche S.p.A. – with whom there
was a regular exchange of information – stating that, in addition to the audit of the statutory and consolidated financial statements,
limited audits of the half-year financial report, and agreed upon procedures for audit of the quarterly reports, Fiat had also engaged
the firm to provide the following services:
agreed upon procedures for audit of Fiat Group consolidated financial statements at 31 December 2010, as restated for the
purpose of consolidation by the parent company Exor – fees totaling €40,000;
review of pro forma data contained in the Information Document prepared pursuant to Article 71 of Legislative Decree 58/1998 –
fees totaling €300,000;
non-recurring activities (analysis and review of accounting treatment) related to the acquisition of control and initial consolidation
of Chrysler Group LLC and subsidiaries – fees totaling €270,000;
audit of expenditures for 2010 approved by the Joint Committee established by Fiat S.p.A. and Politecnico di Torino in relation to
establishment of master’s and diploma courses in Automotive Engineering – fees totaling €6,000;
attestation of tax forms (“Modello Unico”, IRAP, tax consolidation and Form 770) – fees totaling €5,000;
analysis of tax-related matters by the firm Studio Tributario e Societario – fees totaling €20,000.
On 27 February 2012, Deloitte & Touche S.p.A. presented a report pursuant to Article 19 (3) of Legislative Decree 39/2010 in which it
communicated that no fundamental issues had emerged during the audit process and no significant failings had been identified in the
system of internal control over financial reporting.
On the basis of activities carried out, the Statutory Auditors found Fiat’s Internal Control System to be adequate overall and noted that,
in its role as committee for internal control and audit, no issues had arisen requiring communication to Shareholders.
The guidelines provided by Fiat S.p.A. to its subsidiaries pursuant to Article 114 (2) of Legislative Decree 58/1998 also appear to be
adequate.
With reference to Article 36 of the Market Regulations issued by Consob, which relates to material subsidiaries incorporated in and
subject to the laws of a non-EU member state, we report that at 31 December 2011 the companies to which that provision applies are
included among those companies considered relevant for the purposes of Fiat’s system of internal control over financial reporting, in
relation to which no failings were reported.
The Board of Directors provided us with its report on operations for the first half of the year by the statutory deadline and published it
in accordance with the Consob requirements. It also complied with the legal requirement for quarterly reports. With regard to Consob
communications, for those matters under our responsibility, we confirm that:
the information provided by Directors in the report on operations is comprehensive and complete;
as required by Legislative Decree 58/1998, we have been informed on a constant basis on matters under our responsibility;
no third party, related party or intercompany transactions which were atypical and/or unusual, as defined in the Consob
Communication of 28 July 2006, emerged in the course of our periodic checks and audits;
with regard to intercompany transactions, in the Notes to the Financial Statements the Board of Directors reports that there were
numerous transactions involving the sale of goods and services between the Company and other Group companies and related
parties, and confirms that they took place at standard market terms for the nature of goods and services concerned. We note that
from 1 January 2011 the Company implemented the “Procedures for Transactions with Related Parties”, pursuant to Consob
Regulation 17221 of 12 March 2010 (as amended) and the Consob Communication of 24 September 2010, whose guidelines were
adopted by the Board of Directors on 21 October 2010;
no issues requiring mention arose from meetings conducted with the Statutory Auditors of the principal subsidiaries;