AMPER, SA and Subsidiaries Consolidated Financial Statements for ...

ACTIVITY REPORT OF THE AUDIT AND
CONTROL COMMITTEE DURING THE 2011
FINANCIAL YEAR
• Propose the budget for this service.
• Review the annual work plan of the internal audit and the annual report of its activities.
• Receive periodic information regarding its activities, and
• Verify that the Senior Executives take into account the conclusions and the
recommendations of the reports.
f) Review the accounts of the company, monitor the compliance of the legal requirements and
the correct application of generally accepted accounting principles, as well as report the
proposals raised to amend the accounting principles and criteria suggested by
management.
g) Be aware of the financial reporting process and the internal control systems. In this regard:
• Monitor the development process and the integrity of the financial reporting relative to
the Company and the Group, monitoring the compliance with the regulatory
requirements, the appropriate delimitations of the scope of consolidation and the correct
application of the generally accepted accounting principles, give an accounting thereof to
the Board of Directors and reporting the proposed amendments to the accounting
principles and criteria suggested by management. The Committee shall verify that the
quarterly and semi-annual financial statements are prepared using the same accounting
principles as the yearly financial statements.
• Periodically review the internal control and risk management systems, ensuring that the
following are identified, as a minimum:
i) The various types of risks (operational, technological, financial, legal, reputational,
etc.) to which the Company is exposed.
ii) The determination of the level of risk that the Company considers acceptable.
iii) The measures in place to mitigate the impact of the identified risks, should they
materialise.
iv) The information and internal control systems which are to be used to control and
manage these risks, including the contingent liabilities and the off balance sheet
risks.
h) Review and report the issue prospectuses at the outset and, in general, the information that
the Board of Directors must provide to the markets and their supervisory bodies.
i) Report to the Board of Directors, prior to the adoption thereby, of the relevant decisions
concerning the creation or acquisition of holding companies or companies domiciled in tax
havens, as well as any transactions or operations of a comparable nature which, because of
its complexity, may impair the transparency of the Company.
j) Establish and monitor the performance of a procedure which will allow employees to report
to the Committee the potential irregularities, specifically the financial and accounting
irregularities, and in a confidential manner, and if necessary, anonymously, that they may
have detected in the operation of the Company.
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23 March 2011