Internal Control System and Audit

Internal Control System and Internal Audit Activities

The objective of the Company’s Internal Control System is to ensure operational effectiveness and productivity, financial reporting system reliability and compliance with legal regulations.

The Internal Control System is composed of standards, job descriptions, authorization processes, policies and written procedures defined in the workflows.

The Internal Control System is periodically reviewed by Internal Audit Group for effectiveness. Within the organizational structure, the Internal Audit Group is directly reporting to the Chairman of the Board of Directors to ensure independency.

Audit Information

No finalized audit activity exists in 2013.

Information on Preparation of Consolidated Financial Statements

As a first step Koç Holding Reporting Unit delivers “Financial Reporting Directives” to Group Companies for preparation of consolidated financial statements. After the financial data is reported by Group Companies through the Hyperion Koç Reporting Application, Koç Holding Financial Reporting Unit examines the data and then it is transferred to the consolidated financial statements. The consolidated financial statements are audited by Audit Committee, Internal Audit Group and independent audit company Güney Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik Anonim Şirketi a member firm of Ernst & Young Global Limited).