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affiliate is required to submit a detailed Internal Control
Questionnaire (ICQ) to the Company. These ICQs document
the key controls for each business process deemed critical
and describe how such controls are implemented at the
operating company. They also describe what types of test
were performed during the period concerned, in order to be
able to confirm the adequacy of the controls in place.. The
ICQs are updated every six months and are completed by
the "owner" of the business process.
In order to confirm the consistency of the declarations
made, the Internal Audit Department reviews at a central
level the ICQs submitted and selects certain Affiliates or
business processes for analytical follow-up audits. A report
is prepared on the results of these checks, consistent
with the process of reporting on all other internal audit
activities.
During 2012, this system was fully employed in the
analysis of all critical business and financial processes at
the 10 most important affiliates acquired on purchase of
the Draka group. A further 6 companies within the Draka
group were subjected to a partial analysis of their internal
processes.
The Company believes that the number of processes
analysed and affiliates evaluated using this assessment
system is sufficient to satisfy the control requirements of
Law 262/05.
