Annual Corporate Governance Report 2017

45 The process addresses other types of risk (operational, technological, financial, legal, tax, reputational, environmental, etc.) insofar as they may affect the financial statements. In the case of the Atresmedia Group, the companies within the scope of consolidation for the consolidated financial statements of the Atresmedia Group are identified. Any change in the scope of consolidation due to an investment, disposal or alteration is known to the Finance Department, the Legal Affairs Department and Internal Audit. The information on the Atresmedia Group corporate structure is updated at each reporting date to assess whether any change has occurred. In addition, in connection with shareholdings that are consolidated with the Atresmedia Group, a procedure is in place whereby account movements at Group companies are reported to the Finance Department: o For investees controlled by Atresmedia, via the reporting and consolidation processes carried out by the Finance Department. o For investees not controlled by Atresmedia, via the reporting and information supply processes agreed by those entities with the Group’s Finance Department. Which governing body of the entity supervises the process. The ICFR system is supervised by the Audit and Control Committee. To perform such supervision, it has the assistance of the Compliance Committee and, in particular, of the Finance Department and of the Internal Audit and Process Control Department, which have performed the identification work and assessed the risks associated with ICFR. F.3 Control activities Disclose the existence of at least the following procedures, and describe their main features. F.3.1. Procedures for review and authorisation of financial reporting and description of the ICFR system to be disclosed to securities markets, with an indication of the persons responsible, and documents describing the flows of activities and controls (including those addressing fraud risk) for transactions that might materially affect the financial statements, including the accounting close procedure and specific review of any significant expert judgements, estimates, measurements and projections. The Risk Management and Control System includes and fully identifies a series of specific ICFR controls under the responsibility of officers concerned with the production and supervision of financial reporting. These controls ensure that each of the officers must perform a series of control actions that ensure the comprehensive and integrated correction of all information published at the given time. The Atresmedia Group has established a series of procedures for the preparation and review of the financial statements and the accounting close. The Finance Department has established a series of steps and procedures that must be complied with by the areas concerned in order to perform the accounting close and prepare the financial statements. In addition, a series of procedures and protocols have been defined at Group level, which aim to minimise any risk related with ICFR and ensure the published information is reliable. The main related procedures and protocols are: - Procedure to manage the procurement of goods and services - Customer management procedure: troubleshooting, non-performing accounts, customer blocking and unblocking - Procurement Committee and Investment Committee procedures - Power of attorney management procedure - IT security procedure - Protocol for approval and filing of price-sensitive information disclosures with the CNMV