IBERSOL | Annual Report 2021

ANNUAL REPORT 2021 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 subsidiar- ies offer a reasonable guarantee that only duly authorized transac- tions 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 con- tinuous 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 in- volved and all the documents are reviewed in detail. This includes a review of the principles used, verification of the accuracy of the in- formation produced and a check of consistency with the principles and policies used in previous years - the accounting records and the preparation of the financial state- ments are overseen by the central Accounting function. The finan- cial 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 ad- ditional 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 Legal Accounts certification and External Audit Report. - The Statutory Auditor carries out an annual audit and a half-year- ly limited review of the individual and consolidated accounts. Also, each quarter it conducts a summary examination of the quarterly information. - The process of preparation of the individual and consolidated finan- cial information and of the Management Report is supervised by the 275