IBERSOL Annual Report and Consolidated Accounts 2017

Report on Corporate Governance in detail. This includes a review of the principles used, verification of the accuracy of the information produced and a check of consistency with the principles and policies used in previous years - The accounting records and the preparation of the financial statements are overseen by the central accounting function. The financial statements are prepared by the accountants and are reviewed by the Administrative Unit; - The consolidated financial statements are prepared on a quarterly basis by the central consolidation function, which conducts an additional reliability check; - The financial information, annual report and financial statements are reviewed by the Financial Unit and submitted to the Board of Directors for final review and approval. Once the documents have been approved, they are sent to the external auditor, which issues its audit report and opinion. - The statutory auditor carries out an annual audit and a half-yearly limited review of the individual and consolidated accounts. Also, each quarter it conducts a summary examina- tion of the quarterly information. - The process of preparation of the individual and consolidated financial information and of the management report is supervised by the Statutory Audit Committee and the Board of Directors. At quarterly intervals these bodies meet and analyze the individual and consoli- dated financial statements and management report. Among the causes of risk that may materially affect financial reporting are the accounting esti- mates, which are based on the best information available and on the knowledge and experience of current and past events. Balances and transactions with related parties are disclosed in the annex to the financial statements and are associated above all with the Group’s operating acti- vities and its lending and borrowing, which is done at market prices. 172