IBERSOL Annual Report 2018

ANNUAL REPORT 2018 VII.2 Statutory audit of accounts and supervision VII.2.1. Through the use of internal regulations, the supervisory body should define: i. the criteria and the process of selection of the statutory auditor; ii. the methodology of communication between the company and the statutory auditor; iii. the monitoring procedures destined to ensure the independence of the statutory auditor; iv. the services, besides those of accounting, which may not be provided by the statutory auditor. Adopted 34,37 and 38 VII.2.2. The supervisory body should be the main interlocutor of the statutory auditor in the com- pany and the first recipient of the respective reports, having the powers, namely, to propose the respective remuneration and to ensure that adequate conditions for the provision of services are ensured within the company. Adopted 34,37 and 38 VII.2.3. The supervisory body should annually as- sess the services provided by the statutory au- ditor, their independence and their suitability in carrying out their functions, and propose their dismissal or the termination of their service con- tract by the competent body when this is justi- fied for due cause. Adopted 7 and 38 VII.2.4. The statutory auditor should, within their powers, verify the application of policies and systems of remuneration of governing bodies, the effectiveness and the functioning of the mechanisms of internal control, and report any irregularities to the supervisory body. Adopted 38 to 41 VII.2.5. The statutory auditor should collaborate with the supervisory body, immediately provid- ing information on the detection of any relevant irregularities as to the accomplishment of the duties of the supervisory body, as well as any difficulties encountered whilst carrying out their duties. Adopted 38 and 51 195