IBERSOL | 2019 Annual Report

2019 ANNUAL REPORT of the company, reporting functionally to the same director, regardless of the hierarchical relationship that these departments maintain with the executive management of the company. Within the scope of audit services, the external auditor meets with the different departments of the Group, at least twice a year to analyze and review the internal control system, submitting a report to the Statutory Audit Committee for subsequent discussion with the Board of Directors, namely with the non-executive director. Regarding the risk in the process of financial information disclosure, only a restricted number of employees is involved in the disclosure process. All those who are involved in the process of financial analysis of the Company are considered to have access to inside information and are specially informed of their obligations in this precise scope. The system of internal control of the accountability, preparation and dis- closure of financial information rests on the following key elements: - the use of accounting principles, as set forth in the notes to the ac- counts, is one of the bases of the control system; - the plans, procedures and records of the Company and its subsidiaries offer a reasonable guarantee that only duly authorized transactions are recorded and that they are recorded in accordance with generally accepted accounting principles; - the financial information is analysed systematically and regularly by business unit management (supported by the Management Control Department) and by the heads of the profit centres, ensuring conti- nuous monitoring and the necessary budgetary control; - a timetable is previously established for the preparation and review of information, the work is divided up among the various areas involved and all the documents are reviewed 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 state- ments are prepared by the accountants and are reviewed by the Ad- ministrative Unit; - The consolidated financial statements are prepared on a quarterly ba- sis by the central consolidation function, which conducts an additional 165