Consolidated Financial Statements and Consolidated Management ...

- Supervision of internal control and risk management, evaluating and supervising the effectiveness of the internal control and risk management
systems, including those affecting the reliability of financial reporting.
- Supervision of regulated financial information, analysing the process whereby the regulated financial information is produced and presented.
- Supervision of audit activities.
This means that, with regard to the foregoing, the Groups’ Financial Information Control System makes it possible to:
- Provide management and the Board of Directors with sufficient information to determine whether the internal financial information control system is
functioning correctly.
- Identify and correctly control defects before they can have any significant impact on the quality of the financial information.
- Maintain proper control operations, aimed at prioritising risks and maintaining constant supervision by identifying the controls for the most significant
risks, identifying key controls, and lastly, checking that these controls are sufficient.
The Internal Audit Department evaluates this type of risk continuously throughout the year. The actions taken by this Department are defined in its
Annual Plan, which includes verification and evaluation of the operational controls implemented in the key business processes, especially those relating
to the hotel business.
This supervision of the Internal Financial Information Control System ends with the most significant results and shortfalls being reported to those in
charge, their managers and the Audit and Control Committee, and remedies are proposed in an action plan.
As part of the process of reviewing and reporting the results, the internal audit team meets with the centre managers upon completion of each review
task and on a quarterly basis with the managers of the Business Units. Incidents are discussed during these meetings and future action plans defined
The Audit Plan is approved annually by the Audit and Control Committee, and applies to all the Group’s business units.
The Internal Audit team has a presence in the Group’s main business units, some of the most significant of which are Spain, Germany, Benelux and
Italy, and its ongoing work helps to guarantee the effectiveness of the oversight tasks needed to ensure proper application of the Company’s internal
control system.
ANNUAL CORPORATE GOVERNANCE REPORT 59