TomTom 2013 Annual Report Download - page 18

In Control and Responsibility Statement
The Management Board is responsible for TomTom's risk
management and internal control systems. The Management Board
believes that the company maintains an adequate and effective
system of risk management and internal control that complies with
the Dutch Corporate Governance Code (the Code).
The internal control systems are designed to manage, rather than
eliminate, the risk of failure to achieve business objectives and can
provide reasonable, but not absolute, assurance against financial
loss or material misstatements in the financial statements.
TomTom views the management of risk as a management activity.
The Management Board reviews the effectiveness of TomTom's
systems of internal control relative to strategic, financial,
operational and compliance risks and discusses risk management
and internal controls with the Audit Committee on at least a
quarterly basis.
TomTom embeds risk management in its strategic business
planning. A top-down approach is followed in which management
identifies the major risks that could affect the company's business
objectives and assesses the effectiveness of the processes and
internal controls in place to manage and mitigate these risks. For
an overview of our most important business risks, please refer to
the Business Risks section. Assurance on the effectiveness of
controls is obtained through management reviews, control self-
assessments, internal audits and testing of certain aspects of the
internal financial control systems by the external auditors during
their annual audit.
This, however, does not imply that TomTom can provide certainty
as to the realisation of business and financial objectives, nor can
the approach taken by the company to internal control over
financial reporting be expected to prevent or detect all
misstatements, errors, fraud or violation of law or regulations.
The key features of the systems of internal control are as follows:
• Clearly defined lines of accountability and delegation of
authority are in place, together with comprehensive reporting
and analysis against approved budgets;
• Operating risk is minimised by ensuring that the appropriate
infrastructure, controls, systems and people are in place
throughout the business;
• An organisational design is in place that supports business
objectives and enables staff to be successful in their roles;
• Treasury operations manage cash balances and exposure to
currency transaction risks through treasury policies, risk limits
and monitoring procedures; and
• A Code of Ethics is embedded in the TomTom culture and is
accessible to all staff via the intranet.
The key controls over financial reporting policies and procedures
include controls to ensure that:
• Commitments and expenditures are appropriately authorised by
the Management Board;
• Records are maintained that accurately and fairly reflect
transactions;
• Any unauthorised acquisition, use or disposal of TomTom's
assets that could have a material effect on the Financial
Statements are detected on a timely basis;
• Transactions are recorded as required to permit the preparation
of financial statements; and
• TomTom is able to report its financial statements in compliance
with IFRS.
The Management Board believes, based on the activities performed
in 2013 and in accordance with best practice provision II.1.5 of the
Code, that the risk management and control systems with regard
to the financial reporting risks have functioned effectively in 2013,
and that the risk management and control systems provide a
reasonable assurance that the 2013 financial statements do not
contain any errors of material importance.
With reference to the statement within the meaning of article 5:25
(2c) of the Financial Supervision Act, the Management Board states
that, to the best of its knowledge:
• The annual financial statements give a true and fair view of the
assets, liabilities, financial position and profit or loss of the
company and the undertakings included in the consolidation
taken as a whole; and that
• The Management Board Report includes a fair view of the
development and performance of the business and the position
of the company and the undertakings included in the
consolidation taken as a whole, together with a description of
the principal risks and uncertainties that the company faces.
Amsterdam, 11 February 2014
The Management Board
Harold Goddijn / Chief Executive Officer
Marina Wyatt / Chief Financial Officer
Alain De Taeye / Member of the Management Board
Management Board Report / Continued
ANNUAL REPORT AND ACCOUNTS 2013 / 18