Chrysler 2013 Annual Report Download - page 347

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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 28 February 2014, we received a communication from Reconta Ernst & Young 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:
audit of the system of internal control over Fiat Group’s financial reporting (“ICFR”) for the 2013 financial year – fees totaling €680,000
procedures relating to analysis of the system of internal control over financial reporting as it relates to the new GRC system – fees totaling
€175,000
verification procedures relative to Available Liquidity reported at 30 September 2012 – fees totaling €100,000
analysis of accounting solutions under consideration by the Company in relation to intended investment transactions – fees totaling
€43,000
No other work was performed or fee charged to Fiat S.p.A. by Reconta Ernst & Young S.p.A. or other entities in the Ernst & Young network.
On 4 March 2014, Reconta Ernst & Young S.p.A. presented a report pursuant to Article 19 (3) of Legislative Decree 39/2010 in which it
communicated that no material 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, in their role
as committee for Internal Control and Audit, that no issues had arisen requiring notification 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 2013 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 confirm 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 management and the statutory and independent auditors of the principal
subsidiaries
Reports of the Board
of Statutory Auditors