Annual Corporate Governence Report
In addition, at least once a year, the internal audit function reviews the audit work programmes, which are documents describing the audit tests to be performed, to ensure they comply with the requirements in place. In 2012, the audit function evaluated the internal control procedures and IT system controls of the units falling under the scope of its review, testing the effectiveness of their design and the correct functioning of the controls analysed.
Procedure for reporting any significant internal control weaknesses encountered As stipulated in the bylaws and rules and regulations of the board of directors, the audit and compliance committee is officially tasked with the job of overseeing the financial information process and the internal control systems. The audit and compliance committee’s regularly scheduled meetings deal with any possible control deficiencies which could affect the reliability and accuracy of the financial statements, to which end it can call in the various implicated areas of the Group to provide the necessary information and clarifications; the committee also takes stock of the potential impact of any flaws detected on the financial information.
External auditor report The information relating to the internal control over financial reporting (ICFR) system (also known internally as the Santander Group Internal Control Model) provided in this section of the annual corporate governance report is assessed by the external auditor, which issues an opinion on the same and on the effectiveness of the ICFR system with respect to the financial information included in the Group’s consolidated financial statements for the year ended 31 December 2013.
Mechanisms for the capture and preparation of financial information The Group’s computer applications are configured into a management model which, using an IT system structure appropriate for a bank, is divided into several ‘layers’, which supply different kinds of services, including : - General IT systems: these provide information to division/business unit heads. - Management systems: these produce information for business monitoring and control purposes. - Business systems: software encompassing the full product-contract-customer life cycle.
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