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 standard descriptions, job descriptions, authorization processes, policies and written procedures defined in the workflows.

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

Audit Information

There is no private or public audit activity finalized in 2014.

Information on Preparation of Consolidated Financial Statements

As a first step, Koç Holding Reporting Unit delivers “Financial Reporting Directives” to Group Companies for the preparation of consolidated financial statements. Once financial data is reported by Group Companies through the Hyperion Koç Reporting Application, the Koç Holding Financial Reporting Unit examines the data whereupon it is transferred to the consolidated financial statements. The consolidated financial statements are audited by the 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).