39 / 64
39
reviewing compliance with the regulatory requirements, the adequate definition of
the consolidation scope and the correct application of accounting policies.
Frequent supervision of the internal control and risk management systems, in order
that the main risks are adequately identified, managed and notified, discussing with
the Auditor or Audit company the significant weaknesses of the risk control system
detected in the performance of the audit.
Oversight of the independence and effectiveness of the internal audit function;
proposing the selection, appointment, re-election and removal of the internal audit
service head, and the estimate for that service; receiving periodic information on
its activities; and verifying whether senior management has taken into account the
conclusions and recommendations of its reports.
In addition, the Regulatory Compliance Committee assumes, among other functions, that of
providing support and coordination in conjunction with Internal Audit and Process Control
in the monitoring and supervision of the Internal Control over Financial Reporting (ICFR)
system rules, approval in the implementation of the Code of Conduct and the
implementation and monitoring of the functioning of the Queries and Whistleblower
Channel.
The Financial Division is responsible for implementing the ICFR through the Accounting,
Consolidation, Billing, Management and Administration Control areas. These areas use
information from other areas and management systems, and must ensure the correct
transfer of information among different management systems, and the adequate accounting
registration of the financial management system (SAP).
Likewise, the Investor Relations area specifically reviews that all the information sent to the
markets and to investors is clear and understandable and coincides, although its
presentation is different, with the financial information of the related financial statements.
The Internal Audit Division works with the Financial Division on supervising the correct
functioning of the ICFR and on defining and implementing the controls required to ensure
and guarantee the reliability of the information.
In this regard, numerous controls have been defined in Atresmedia’s Risk Management and
Control System related with the Internal Control over Financial Reporting (ICFR) system,
that is periodically assessed by the organisational areas responsible for the ICFR.
F.1.2.
The following elements if they exist, especially with respect to the preparation of financial
information:
Divisions and/or mechanisms entrusted: (i) design and review of the
organisational structure; (ii) clear definition of the lines of responsibility and
authority, with an adequate distribution of tasks and functions; and (iii) whether
sufficient procedures exist for their correct implementation at the entity.
The organisational structure of the Atresmedia Group is proposed by the CEO
when it affects the first executive level, and is approved by the Appointments and
Remuneration Committee.
The Director Generals and the heads of each organisational unit/business unit
define the organisation of the remaining executive levels and resources of each
unit, in coordination with the Group's Corporate General Management (Human
Resources area).
The organisational changes and, where appropriate, new employee recruitments,
at top executive level, are notified to the whole organisation through specific
email notices.
The lines of authority of the Atresmedia Group in the different processes for the
preparation of financial information are shown in the organisation chart of the
Group and of the different organisational areas/business units.
The Internal Audit and Process Control and Legal Advisory areas are responsible
for defining the main processes, protocols and procedural steps at the
Atresmedia Group, and for notifying them, subject to the supervision and