Tiscali 2009 Annual Report Download - page 70

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Assessing checks when faced with identified risks
The assessment of the checking system used is carried out in accordance with various elements: Timeliness
and frequency: sufficiency; operational compliance; and organisation assessment. The overall analysis of
checks for each risk is autonomously defined as a summary of the assessment process at the level of
adequacy and compliance that corresponds to those checks. The analyses sum up considerations about
the effectiveness and efficiency of the checks on each individual risk and the overall assessment of the
management of risks is broken down into assessments of existence, appropriateness and compliance. The
information flows with the results of the activity are supplied to the management bodies by the Director in
Charge of the accounting document preparation.
B) Roles and functions involved:
The Director in Charge is in essence at the top of a system that supervises the formation of the financial
information and provides for the information of the company summit thereupon. With the purpose of
pursuing his/her assignment, the Director in Charge has the option of specifying the organisational lines for
an appropriate structure in the context of his/her won duties; he/she has the resources and tools to carry out
the work; and has the option of working with other organisation units.
A multiplicity of corporate functions contribute to providing information of an economic-financial nature.
Thus, the Director in Charge sets up a systematic and fertile relationship with said functions. The Director
in Charge is required to inform the Board of Statutory Auditors in good time if any critical items of an
accounting, asset or financial nature were to emerge.
The Consolidated Financial Statements Function serves as an intermediate level and as a link between the
Director in Charge and the single Administrative Reporters for checking defined relevancies within the Tiscali
Group and arrange to gather, check, assemble, and monitor the information received from the latter. The
Consolidated Accounts Function cooperates with the Director in Charge with regard to the documentation
of the accounting processes and their related updating over time.
The Administrative Reporters for the various Group subsidiaries gather the operating information at local
level, check it and guarantee the appropriate information flows with regard to compliance with the outside
regulations involved from time to time.
A constant flow of information is expected between the three levels described above, by means of which the
Reporters inform the Consolidated Financial Statements Function, and by means of the latter the Director
in Charge, in accordance with the provisos under which the work of management is carried out and the
process of preparing accounting and financial documents is checked for any critical items emerged during
the period and for the remedial action to overcome any problems.
It is believed that the model used will enable sufficient guarantees to be provided for correct accounting
and financial information. It is however stressed that it not possible to be certain that no malfunctions or
anomalies liable to affect accounting and financial information will occur, even in the presence of correctly
configured and operational internal control systems,
Corporate Governance Report and Ownership Structure