entire - Deutsche Bank Annual Report 2012

Deutsche Bank 01 – Management Report 120
Financial Report 2010 Internal Control over Financial Reporting
The operation of ICOFR is also importantly supported by Group Technology and Operations, Legal, Risk &
Capital and Group Tax. Although these functions are not directly involved in the financial preparation process,
they significantly contribute to the overall control of financial information:
— Group Technology and Operations (“GTO”) – responsible for confirming transactions with counterparties,
performing reconciliations both internally and externally of financial information between systems, depots
and exchanges. GTO also undertake all transaction settlement activity on behalf of the Group and perform
reconciliations of nostro account balances.
— Legal, Risk & Capital (“LRC”) – through their responsibility for developing policies and standards for managing
credit, market and operational risks. LRC identifies and assesses the adequacy of credit and operational
provisions. The Legal department manages legal risks and identifies and assesses legal risk provisions.
— Group Tax – responsible to produce complete and correct income tax related financial data together with
Finance, covering the assessment and planning of current and deferred income taxes and the collection of
tax related information. Group Tax monitors the income tax position and controls the provisioning for tax risks.
Controls to minimize the risk of financial statement misstatement
The system of ICOFR consists of a large number of internal controls and procedures to minimize the risk of
misstatement of the financial statements. Such controls will include those which:
— are ongoing or permanent in nature such as supervision within written policies and procedures or segregation
of duties,
— operate on a periodic basis such as those which are performed as part of the annual financial statement
compilation process.
— are preventative or detective in nature.
— have a direct or indirect impact on the financial statements themselves. Controls which have an indirect
effect on the financial statements include IT general controls such as system access and deployment controls
whereas a control with a direct impact could be, for example, a reconciliation which directly supports a
balance sheet line item.
— feature automated and/or manual components. Automated controls are control functions embedded within
system processes such as application enforced segregation of duty controls and interface checks over the
completeness and accuracy of inputs. Manual internal controls are those operated by an individual or group
of individuals such as authorization of transactions.