Internal control relating to financial reporting is based on a control environment that includes the organisation, decision-making channels, authorisation and responsibilities documented and communicated in steering documents, such as the delegation of duties between the Board and the Chief Executive Officer, and instructions for authorisation, accounting and reporting.
The risks identified concerning financial reporting are managed by the Group’s control structure.
Steering documents have been distributed to the appropriate staff to support complete and correct financial reporting. Effectiveness and compliance are monitored through programmed controls and manual procedures. All reporting is performed in the Group’s common reporting system. The Group management conducts regular reviews of the subsidiaries’ performance and growth. The financial review of their operations is an important part of this process. It also actively participates in the subsidiaries’ boards where it reviews financial reporting.
The Board of Latour receives monthly financial reports and the Group’s financial situation is discussed at every Board meeting.
A review of the Group’s internal control of essential processes has been carried out. The majority of the companies have presented a self-assessment concerning the reliability of their procedures. The inadequacies that were noted did not affect the reliability of control over reporting but necessary measures are being taken. This is followed up throughout the year.