LensCrafters 2013 Annual Report Download - page 71

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The Board of Directors allocated specific funds, totaling Euro 50,000, in order to provide the
Supervisory Board with adequate financial resources to perform its duties for the 2013 fiscal
year.
On the basis of the guidelines provided by the Parent Company and of the risk assessment
performed, the subsidiary companies Luxottica S.r.l. and Luxottica Italia S.r.l. adopted and
have updated their own Organization Model pursuant to Italian Legislative Decree no.
231/2001, appointing the respective Supervisory Bodies over the years, in order to implement
specific control measures relating to the different risk profile of each company.
Sarbanes-Oxley Act
Compliance with the provisions of the Sarbanes-Oxley Act (“SOX”) is compulsory for
Luxottica Group since it is listed on the New York Stock Exchange (‘NYSE’), and therefore
it has represented a significant motivation for the Group to continually improve its internal
control system.
In particular, in complying with SOX, Luxottica intended not only to comply with a
regulation but has also taken a real opportunity to improve its administrative and financial
governance and the quality of its internal control system in order to make it more systematic,
consistently monitored and methodologically better defined and documented.
Luxottica is aware that the efforts made to define an efficient internal control system, capable
of ensuring complete, accurate and correct financial information, do not represent a one-off
activity but rather a dynamic process that must be renewed and adapted to the evolution of
the business, of the socio-economical context and of the regulatory framework.
The objectives of the control system have been defined consistently with the guidelines of
SOX, which differentiates between the following two components:
• controls and procedures to comply with the disclosure obligations related to the
consolidated financial statements and the Form 20-F (Disclosure controls and
procedures-DC&P);
• internal control system that supervises the preparation of the financial statements
(Internal Control Over Financial Reporting-ICFR).
The disclosure controls and procedures are designed to ensure that the financial information
is adequately collected and communicated to the Chief Executive Officer (CEO) and to the
Chief Financial Officer (CFO), so that they may make appropriate and timely decisions about
the information to be disclosed to the market.
The internal control system that supervises the preparation of the financial statements has the
objective of ensuring the reliability of the financial information in accordance with the
relevant accounting principles.
The structure of the internal control system was defined consistently with the model provided
by the COSO report, the most widely used international model to define and assess the