Annual report and accounts 2016

173
C.1.31 Indicate whether the consolidated and individual financial statements submitted for authorisation for issue by
the board are certified previously:
Yes
Identify, where applicable, the person(s) who certified the company’s individual and consolidated financial statements prior to their
approval by the board.
Name
Willie Walsh
Enrique Dupuy de Lôme
Position
Chief Executive Officer
Chief Financial Officer
C.1.32 Explain the mechanisms, if any, established by the board to prevent the individual and consolidated financial
statements it prepares from being laid before the shareholders’ meeting with a qualified audit report.
In accordance with article 35.4 of the Board Regulations, the Board of Directors shall prepare the Company’s financial statements
so that such financial statements do not give rise to any restrictions or qualifications by the auditors. This notwithstanding, if the
Board of Directors deems it appropriate to prepare the financial statements subject to restrictions or qualifications in the opinion
of the auditors, it must clearly explain to shareholders the scope of such restrictions or qualifications and the reasons behind
its actions.
The Audit and Compliance Committee has the duty to review the Company’s annual financial statements, monitor compliance with
legal requirements, the appropriate definition of the scope of consolidation and the correct application of generally accepted
accounting principles, as well as reviewing significant financial reporting judgements in the Company’s annual accounts.
C.1.33 Is the secretary of the board also a director?
No
If the secretary is not a director, complete the following table:
Name or corporate name of the secretary
Representative
Álvaro López-Jorrín –
C.1.34
Section eliminated.
C.1.35 Indicate and explain, where applicable, the specific mechanisms implemented by the company to preserve the
independence of the auditor, financial analysts, investment banks and rating agencies.
The relations of the Board of Directors with the Company’s auditors shall be channelled through the Audit and
Compliance Committee.
The Board of Directors shall refrain from engaging any audit firm entitled to be paid by the Company for all services rendered fees
in an amount in excess of 10 per cent of such firm’s total revenue for the previous year.
With regard to the external auditor, the Audit and Compliance Committee has, among others, the following powers:
i) To submit to the Board proposals on the selection, appointment, reappointment and substitution of the
auditor, assuming responsibility for the selection process and the terms of its engagement, its remuneration
(ensuring its independence and quality are not compromised), the scope of its professional mandate and the
revocation or renewal of its appointment.
ii) To regularly collect information from the auditors on the audit plan and its implementation, as well as
preserving their independence in the exercise of their functions. In particular, to ensure that the Company and
the external auditor respect the current legislation on provision of non-audit services, the limits on the auditor’s
business concentration and, in general, any other rules regarding auditor independence.
iii) To oversee compliance with the audit agreement.
iv) To serve as a channel for communication between the Board and the auditors and to assess the results of
each audit.
v) To review the effectiveness of the external audit process.
Strategic Report Corporate Governance Financial Statements Additional Information
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