Opportunity and risk report

Key characteristics of ICS and RMS with regard to the group accounting process

Our RMS is complemented by a Group-­wide internal control system (ICS) that also includes the accounting-­related processes. To the extent that compliance is deemed to be appro­priate, the components of our ICS take into account the principles of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) publication “Internal Con-
trol — Integrated Framework” in its revised version from 2013. On that basis, our accounting-­related ICS is a continuous process based on basic control mechanisms, such as system-­based and manual reconciliations, the separation and clear definition of functions as well as the monitoring of compliance and further development of Group-­wide guidelines and special work instructions.

The accounting-­related control mechanisms we use beyond the instruments outlined above include, among others, standardized reporting throughout DB Group and the regular updating of the relevant accounting directives and accounting-­related systems.

Subject to a binding schedule, business transactions of the accounting-­relevant units are processed in line with IFRS principles and in compliance with Group-­wide, uniform proce­dures. These are then transmitted to the centralized consoli­dation system.

The auditing activities of the intra-­Group auditors, which represent a key element of our control mechanisms, are focused on evaluating the adequacy and effectiveness of our ICS. Audits are also conducted during the stocktaking of prop­erty, plant and equipment as well as inventories. In addition to these measures, the Audit and Compliance Committee and the Supervisory Board monitor the accounting process and the effectiveness of the ICS.

The management of the companies included in the scope of fully consolidation companies and of the individual business units of DB Group verifies the completeness and accuracy of the reporting data relevant to the financial statements among other aspects, using a quarterly internal reporting process. Confirmation is also given that the Management re­s­­­ponsible have implemented the centrally defined ICS mini­­­mum standards for reporting and, where appropriate, have supplemented these with their own documented management and monitoring tools.

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