In order to ensure the correctness, reliability and conformity of financial statements with regulations in force and to be able to generate high-quality financial data, the Company uses elements of internal audit and risk management systems.
The internal audit system and its effectiveness are the responsibility of the Management Board.
The internal audit system is based on:
- Organizational Rules of the Company.
- Accounting Policy.
- ISO 9001:2000 Quality Management System.
- In-house developed Integrated Computer System.
In the process of compiling financial statements of the Company, one of the basic elements of auditing is the verification of the financial statement by an independent auditor.
The auditor is responsible, in particular, for reviewing the half-year financial statement as well as for general examination of the annual report and giving an independent opinion on the material reviewed. The auditor is selected by the Supervisory Board from among reputable auditing companies which ensure high-standard services and the required independence.
The body supervising the financial reporting process of the Company and collaborating with the independent auditor is the Audit Committee appointed by the Supervisory Board.
The element of risk management with regard to the process of preparing financial statements is the internal audit exercised by the internal audit unit within the Company's structures. The internal audit system comprises the most fundamental processes in the Company, including the areas that affect, directly or indirectly, the correctness of financial statements. Internal audits are conducted at the request of and within the limits determined by the Management Board.
Financial statements are drafted by the financial department managed by a Board Member – the Financial Director. Financial data are analyzed by the Management Board, and, once approved, they are presented in financial statements.
When presenting financial data whether in financial statements, interim reports or in other reports intended for the shareholders, the Company continuously applies consistent accounting rules conforming to International Financial Reporting Standards. The Company's account books are kept with the use of the in-house developed Integrated Computer System. The safety of using the computer system is guaranteed by a suitable authorization structure. The access control is exercised at all stages of preparing the financial statement, starting from entering the source data, data processing to generating the output information.
The element of risk management which is essential to the Company is the use of risk-eliminating solutions, as follows:
- for the valuation of provisions for retirement and incapacity gratuities – using the services of an independent actuary,
- for the valuation of financial instruments – making use of the valuation by the bank,
- for the valuation of provisions for employee and senior staff bonuses – using the calculations in accordance with the adopted bonus scheme,
- for the valuation of investment real estate – we have adopted a principle of using the valuation prepared by independent experts,
- for ensuring liquidity – we use trade credit insurance,
- to eliminate market risk, in particular the currency fluctuation risk – we use financial instrument derivatives.
The effectiveness of the audit procedures used and risk management in the process of preparing financial statements are reflected by the high quality of these statements, which is confirmed by the opinions given so far by the auditors examining these statements as well as by the distinction awarded in the Best Annual Report competition organized by the Institute of Accounting and Taxes under the patronage of the Warsaw Stock Exchange.
