entire - Deutsche Bank Annual Report 2012

Deutsche Bank 01 – Management Report 121
Financial Report 2010 Internal Control over Financial Reporting
The resulting combination of individual controls encompasses all of the following aspects of ICOFR:
— Accounting policy – design and implementation. To ensure the globally consistent recording and reporting of
the Group’s business activities in accordance with authorized accounting policies.
— Reference data. Controls over reference data in relation to the general ledger, on and off-balance sheet and
product reference data.
— Transaction approval, capture and confirmation. Controls to ensure the completeness and accuracy of recorded
transactions and that they are appropriately authorized. Controls include transaction confirmations
which are sent to and received from counterparties to ensure that trade details are corroborated.
— Reconciliation controls, both externally and internally. Inter-system reconciliations are performed between
relevant systems for all trades, transactions, positions or relevant parameters. External reconciliations include
nostro account, depot and exchange reconciliations.
— Valuation including Independent Price Verification process (“IPV”). Finance performs valuation controls (“VC”)
at least monthly, in order to gain comfort as to the reasonableness of the front office valuation. The results of
the VC processes are independently reviewed by the Global Valuation Oversight Group. The results of the
VC process are assessed on a monthly basis by the Valuation Control Oversight Committee. Business aligned
valuation specialists focus on valuation approaches and methodologies for various asset classes and perform
IPV for complex derivatives and structured products.
— Taxation. Controls to ensure tax calculations are performed properly and that tax balances are appropriately
recorded in the financial statements.
— Reserving and judgmental adjustment. Controls include processes to ensure reserving and judgmental
adjustments are authorized and are reported in accordance with the approved accounting policies.
— Balance Sheet Substantiation. The substantiation of balance sheet accounts involves determining the integrity
of the general ledger account balances based on supporting evidence.
— Consolidation and other period end reporting controls. At period end, all businesses and regions submit their
financial data to the Group for consolidation. Controls over consolidation include the validation of accounting
entries required to eliminate the effect of inter and intra company activities. Period end reporting controls include
general ledger month end close processes and the review of late adjustments.
— Financial Statement disclosure and presentation. The preparation and certification of disclosure checklists.
Final review and sign-off of the Financial Statements by Senior Finance Management. The Financial Statements
and the Management Report are – after approval of the Management Board – subject to review of
the Supervisory Board and its Audit Committee.