IBERSOL | Annual Report 2020

CORPORATE GOVERNANCE REPORT Chapter VII FINANCIAL INFORMATION VII.1 Financial information Recommendation Degree of Compliance Corporate Governance Report VII.1.1. The supervisory body’s internal regula- tion should impose the obligation to supervise the suitability of the preparation process and the disclosure of financial information by the manag- ing body, including suitable accounting policies, estimates, judgments, relevant disclosure and its consistent application between financial years, in a duly documented and communicated form. Adopted 34 and 38 VII.2 Statutory audit of accounts and supervision VII.2.1. By internal regulations, the supervisory body should define, according to the applicable legal regime, the monitoring procedures aimed at ensuring the independence of the statutory audit. 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 37 and 38 280