Annual Accounts and Report as at 30 June 2011 Draft - Mediobanca

committee was instituted. The Statutory Audit Committee alsoparticipates in these meetings, and accordingly receives regularinformation regarding such transactions. The Statutory AuditCommittee noted that no intra-group transactions or transactionswith related parties have been entered into that are in conflict withthe interests of the company. The Statutory Audit Committee alsochecked that the Related Parties procedure complies with theregulations in force and was applied correctly, in the sense thattransactions were carried out on an arm’s length basis. Based interalia on the activity carried out by the Internal Audit unit, theStatutory Audit Committee believes that relations with relatedparties have been monitored appropriately;d) been informed regarding, and has monitored the adequacy of, theBank’s organizational structure, its compliance with the principles ofproper management, and the adequacy of the instructions given by thecompany to its subsidiaries, as required by Article 114, paragraph 2 ofItalian Legislative Decree 58/98, by acquiring information from theheads of the relevant company divisions and meetings with theExternal Auditors involving the mutual exchange of relevant data andinformation. No critical issues emerged from our review of the annualreports by the Statutory Audit Committees of the Group companies;e) monitored the adequacy of the internal control andadministrative/accounting systems in place, and the reliability ofthe latter in particular with respect to its ability to accuratelyrepresent operations, by:i) review of the statements issued by the Chief ExecutiveOfficer and the Head of Company Financial Reporting asrequired by the provisions of Article 154-bis of the ItalianConsolidated Finance Act;ii) review of the Internal Audit unit’s reports and of informationon the outcome of monitoring activity for the corrective actionhighlighted as a result of its audits;iii) review of reports prepared by the Compliance unit;iv) review of reports prepared by the Risk management unit;v) receiving information from the heads of the various divisionsof the company;vi) meetings with the heads of the supervisory bodies of theGroup companies, in accordance with the provisions ofArticle 151, paragraphs 1 and 2 of the Italian Consolidated268 –