Key characteristics of ICS and RMS with regard to the Group accounting process
Our Group-wide internal control system (ICS), which also includes accounting-related processes, is an integral component of the RMS. To the extent that compliance is deemed to be appropriate, the organization of our ICS takes 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 ICS – especially with regard to the accounting process – 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 another element of our control mechanisms, are focused on assessing the adequacy and effectiveness of our ICS. In addition to our monitoring mechanisms, the Audit and Compliance Committee and/or the Supervisory Board are concerned with 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. In addition, the responsible management confirms compliance with the Group-wide ICS requirements, which are supplemented where necessary by company-specific, documented management and monitoring instruments.
