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 and principles of our ICS take into account the recommended conduct set out by the Commit­­­tee of Sponsoring Organizations of the Treadway Commis­­sion (COSO) in its publication “Internal Control – Integrated Frame­­­work” in the revised version from 2013. On that basis, our accounting-related ICS is a continuous process based on basic Group-wide principles and 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 other things, 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 assessing 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 consolidated 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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