IBERSOL | Integrated Management Report 2022

INTEGRATED MANAGEMENT REPORT 2022 To ensure compliance with the established procedures, the Group’s main internal control systems are evaluated periodically. 55. Main elements of the internal control systems and risk manage- ment implemented by the company regarding the financial disclosure process. The Company does not have any internal audit services reporting directly to the Statutory Audit Committee (given the classic model adopted), the necessary compliance services being overseen by the individual departments of the company. Considering that, organically and functionally, the different Directions of the Group direct the “compliance” services in articulation with the Board of Directors and the Supervisory Board and being the respective heads of these different Directions duly identified in the Company’s organization chart, it is important to restate that they do so in interaction with the Supervisory Board and with the Board Members, regardless of the hierarchical relationship that these Departments maintain with the Executive Management of the Company. The External Audit assesses and reports the risks of reliability and integrity of the accounting and financial information, thus validating the internal control system established in the Group and which is materialized in the clear separation between those who prepare and their users and in the performance of various procedures of validation throughout the process of preparing and disclosing financial information. 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. 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 disclosure of financial information rests on the following key elements: - the use of accounting principles, as set forth in the notes to the accounts, 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 323