Siemens 2015 Annual Report Download - page 36

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Combined Management Report

Qualification of employees involved in the accounting process
is ensured through appropriate selection processes and regular
training. As a fundamental principle, based on materiality con-
siderations, the four eyes principle applies and specific proce-
dures must be adhered to for data authorization. Additional
control mechanisms include target-performance comparisons
and analyses of the composition of and changes in individual
line items, both in the closing data submitted by reporting
units and in the Consolidated Financial Statements. In line with
our information security requirements, accounting-related IT
systems contain defined access rules protecting them from un-
authorized access. The manual and system-based control
mechanisms referred to above generally also apply when rec-
onciling the IFRS closing data to the Annual Financial State-
ments of Siemens AG.
On a quarterly basis, an internal certification process is exe-
cuted. Management of different levels of our organization, sup-
ported by confirmations of management of entities under their
responsibility, confirms the accuracy of the financial data that
has been reported to Siemens’ corporate headquarters and re-
ports on the effectiveness of the related control systems.
Our internal audit function systematically evaluates our finan-
cial reporting integrity, the effectiveness of the control system
and the risk management system, and the adherence to our
compliance policies. In addition, the Audit Committee is inte-
grated into our control system. In particular, it oversees the
accounting process and the effectiveness of the control system,
the risk management system and the internal audit system.
Furthermore, we have set up a Disclosure Committee which is
responsible for reviewing certain financial and non- financial
information prior to publication. Moreover, we have rules for
accounting-related complaints.