Tiscali 2012 Annual Report Download - page 46

Annual financial report as at 31 December 2012
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Date File Name Status Page
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Annual Report as at 31
December 2012 46
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Assessment of checks in relation to 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 Executive in charge of drawing up the Company’s accounting
documents.
B) Roles and functions involved.
The Executive in charge is in essence at the top of a system that supervises the formation of the
financial information and takes steps to inform the senior management in this connection. With the
purpose of pursuing his/her assignment, the Executive in charge has the option of specifying the
organisational lines for an appropriate structure in the context of his/her own duties; he/she has the
resources and tools to carry out the work; and has the option of working with other organisation units.
A series of corporate functions contribute to providing information of an economic-financial nature.
Thus, the Executive in charge sets up a systematic and fertile relationship with said functions. The
Executive 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 Accounts Function serves as an intermediate level and as a link between the
Executive in charge and the individual Administrative Reporters for checking defined relevancies
within the Tiscali Group and arranging to gather, check, assemble, and monitor the information
received from the latter. The Consolidated Accounts Function cooperates with the Executive 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 Accounts Function, and by means of the latter the
Executive 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
emerging 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.