ONE ROOF

HOCHTIEF works with first-rate certified service providers
to counter potential IT-related risks. The performance
indicators agreed in service contracts act as an effective
early warning system. An IT security directive subject
to ongoing independent review ensures that risk
avoidance measures are effectively implemented. Use
of the latest hardware and software ensures data availability
and fends off unauthorized access.
Opportunities
Despite the continuing difficult situation on markets
worldwide, we believe that 2010 will also bring numerous
growth opportunities. For detailed information,
please see the report on opportunities*.
Internal control and risk management system as
it applies to the Group accounting process
The correctness and reliability of financial reporting by
HOCHTIEF Aktiengesellschaft and the HOCHTIEF Group
are vitally important in assisting management in making
decisions as well as disseminating information to
investors and lending banks. At the HOCHTIEF Group,
the risks arising from the Group’s activities are addressed
in the accounting process in various ways. For instance,
every year IFRS accounting guidelines are prepared
based on the IFRS rules applicable at that time in order
to ensure uniform financial reporting and measurement
throughout the Group. In addition, the German Group
companies receive a set of German Commercial Code
(HGB) accounting guidelines updated annually.
The accounting for financial instruments and deferred
taxes is determined in close cooperation with the Finance
and Tax corporate centers so that the correctness
of these figures can also be guaranteed. Moreover,
a treasury management system commonly used
in the industrial and banking sectors and approved by
our auditor has been used since 2009 to aid the measurement
of derivative financial instruments.
IT-based plausibility testing has been implemented for
IT-supported preparation of the consolidated financial
statements so that HOCHTIEF can guarantee that capital,
liability, expense and income consolidation is carried
out correctly. If inconsistencies nonetheless remain,
Corporate Headquarters clarifies the matter during
❘ Information for our Shareholders ❘ ❘ Management Report ❘ ❘ Financial Statements and Notes ❘
consolidation. In addition, the consolidation system
used by the Group is subject to user authorization controls.
These ensure that the employees responsible can
only access the data relevant to them. The consolidation
system underwent an audit by the Group’s internal
auditors. Internal Auditing also audits internal control,
management and monitoring systems throughout the
Group in all business units using a risk-oriented audit
approach, notably taking into account uniform application
of the existing IFRS and HGB guidelines.
Risk management audit
The auditors examined the early warning system and
its integration into planning and reporting processes
when auditing the annual financial statements. The
Executive Board was shown to have taken appropriate
measures to set up a system for the early detection of
risk as stipulated by Section 91 (2) of the German Stock
Corporations Act (AktG). In addition, this early warning
system is capable of identifying at an early stage any
development that might cast doubt over the Group’s
ability to continue as a going concern.
Our internal auditing function additionally reviews and
evaluates the proper functioning and cost-effectiveness
of the installed systems and processes.
*For detailed information,
please see report on opportunities
on pages 121–123.
Annual Report 2009 117