Key characteristics of the ICS and the RMS with regard to the Group accounting process
Our Group-wide internal control system (ICS), which also includes accounting-related processes, is an integral part of the RMS. To the extent that compliance is deemed appropriate, the design of our ICS takes into account the recommended practices set forth in the “Internal Control – Integrated Framework” published by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in its 2013 revised edition. Based on this, our ICS – particularly with regard to the financial reporting process – is a continuous process that relies on fundamental 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 with and further development of Group-wide guidelines and specific work instructions.
The accounting-related control mechanisms we use beyond the instruments outlined above include, among other things, standardized Group-wide reporting 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 into the central 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, among other things. In addition to our monitoring mechanisms, the Audit and Compliance Committee or the Supervisory Board are concerned with the effectiveness of the ICS.
The management of the companies included in DB Group’s scope of fully consolidated companies and of the individual business units verifies, among other things, the completeness and accuracy of the reporting data relevant to the financial statements using a quarterly internal reporting process. In addition, the respective responsible management confirms compliance with the Group-wide ICS requirements, which are supplemented where necessary by company-specific documented control and monitoring instruments.