The Management Board is required to prepare financial statements for each reporting period which give a true and fair view of the state of affairs of the Group at the end of the reporting period and of the profit or loss and cash flows for that period. Financial statements for the reporting year are then submitted to the Supervisory Board for approval, before being disclosed to the public.
The Management Board is responsible for the preparation of the financial statements which comply with the International Accounting Standards adopted by the European Union. The Management Board is also responsible for maintaining proper accounting records, in accordance with Polish law. They have a general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities.
External auditors: selection and rotation
Deloitte Poland is an entity authorized to audit financial statements individual and consolidated in the years 2016-2018.
The Audit Committee has been monitoring the recent developments on audit market reform, including proposed mandatory audit firm rotation in Europe.
Disclosure controls and procedures
KGHM maintains adequate disclosure controls and procedures. These controls and procedures, with respect to the process of preparing the financial statements, are described in detail in our statement of compliance.
KGHM is diligent in its approach to reporting financial results and its ongoing communication with the Polish and international investment community, as well as fulfilling its disclosure obligations.
In February 2014, the Disclosure Committee Statute was drafted, and the Committee started its activities in March 2014. Its role is to oversee public disclosures made by KGHM, ensuring that they are timely, accurate, transparent, complete, and presented in accordance with all relevant laws, applicable regulations and recognised practices, as well as being representative of the financial and operational condition of the company.
The Supervisory Board is responsible for reviewing the effectiveness of the Company’s system of internal control and risk management. The key elements of the risk management system are available in the risk section.