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Auditors
Upon proposal by the management and Board of the Company, on April 2, 2010, the shareholders’
meeting has reappointed Reconta Ernst & Young S.p.A. as the Company’s independent
auditors in relation to the audit of the Company’s financial statements for the three financial
years ending December 31, 2012. The recommendation by the Company’s management and
Board, who had asked alternative audit companies to provide offers for a 3-year period (as
foreseen by Italian law) of collaboration was based on the high quality of the audit team
proposed by E&Y, its audit experience in the pharmaceutical industry, the capability to support
international projects and the financial terms offered for the work expected to be done
for Newron.
The auditor in charge since the first appointment of Reconta Ernst & Young in 2007 is
Paolo Zocchi.
Reconta Ernst & Young will receive an expected fee of thousand EUR 135 (2010: thousand
EUR 138) exclusively due to the audit of the Company’s Italian GAAP Financial Statements,
the financial statements of the subsidiaries under the local GAAP standards, and the Group’s
consolidated IFRS Financial Statements.
Supervisory and control instruments pertaining to the audit
The Board has installed an audit committee, whose task it is to discuss with the auditors the
audit scope, audit and review procedures, significant reporting matters and fees and to
assess the auditors’ performance. The chairperson of the subcommittee, Patrick Langlois, is
responsible for the information of the full Board about the results of the meetings and the
recommendations of the subcommittee.
The duties of the audit committee are
• to consider the appointment of the external auditor, the audit fee, the independence and
objectivity of the auditors and any questions of retirement, resignation or dismissal;
• to review the nature and scope of the audit, discuss the audit with the external auditor
before it commences, and ensure coordination where more than one audit firm is involved;
• to review the annual financial statements before submission to the Board, focusing particularly
on (i) any changes in accounting policies and practices, (ii) major judgmental areas, (iii)
significant adjustments resulting from the audit, (iv) the going concern assumption, (v)
compliance with accounting standards, (vi) compliance with legal requirements, and (vii)
the Chairman’s statement and statement of operations to be made in the Company’s annual
report;
• to review the results of the audit and its cost-effectiveness and in particular: (i) to discuss
problems and reservations arising from the interim and final audits and any matters the
auditors may wish to discuss (in the absence of management where necessary), (ii) to review
the external auditor’s management letter and management’s response, (iii) to consider any
significant ventures, investments or operations which are not subject to external audit;
• to review the annual budgets of the Company;
Auditors – Newron Annual Report 2011 35