Executive in Charge for internal control

Within Terna, the Executive in Charge for internal control is the person responsible for the Audit function, who is not responsible of any operating areas (articles 8.C.6, letter b), and 8.C.7 of the Governance Code).

The Audit manager reports the results to the CEO, to the Internal Control Committee and to the Board of Statutory Auditors concerning the audit activity results relative to risk management and to the suitability of the Internal Control System in order to achieve an acceptable overall risk profile (Article 8.C.6, letter e) of the Governance Code). He operates through audit activity, whose field of application is extended to the whole Group. The activities of Internal audit can be carried out in connection with the departments that carry out activities of internal control in subsidiaries.

The Audit Department has free access to all information systems, deeds and business data, useful to express an independent judgment with respect to the suitability of the Internal Control System to achieve an acceptable risk profile (Article 8.C.6, letter c) of the Governance Code). For the exercise of its own tasks, the Audit Department is assured the availability of adequate means (Article 8.C.6, letter d) of the Governance Code).
Audit activities can be conducted on the basis of a yearly activity plan examined by the Internal Control Committee or can be determined each time by the Company’s top management in relation to specific facts or as a result of particular events.

In February 2009, as envisaged by the international standards issued by the Institute of Internal Audit (IIA), the External Quality Assessment of Terna’s Audit Department ended that assessed the effectiveness of the Audit Department in bringing forth its mission and compliance of the activities carried out with the standards for the practice of Internal Auditing issued by the IIA, obtaining the result of “general compliance”, the highest positive assessment obtainable according to the IIA.

The Board of Statutory Auditors, within its own activities, can request the Audit Department to carry out assessments on specific operating areas or Company operations.
The Board of Statutory Auditors and the Internal Control Committee timely exchange important information for the accomplishment of the respective tasks.