Integrated
Report 2022

Internal audit

Grupa KĘTY S.A. has an Internal Audit Department within the Central Area, whose objective, authority, accountability and principles of operation are defined by the adopted Internal Audit Rules and which, together with the International Standards for the Professional Practice of Internal Auditing, the Group’s Code of Ethics, the definition of internal audit and internal procedures, provide guidelines for the proper functioning of the Department.

The audit area is managed by the Internal Audit Director, who reports functionally to the Supervisory Board of Grupa KĘTY S.A. and administratively to the General Director of Grupa KĘTY S.A. The Internal Audit Director has unlimited access to the Supervisory Board (Audit Committee), including the possibility to communicate with it also without the participation of the Company management.

The purpose of internal audit is to provide independent, objective assurance and advisory services to add value to the organisation and improve its operations. The internal audit activities comprise, for example, objective examining of evidence in order to assure the Supervisory Board/Audit Committee, the Management Board of the Capital Group Management and external parties as to independent assessment of the adequacy and efficiency of the risk management process, corporate governance and internal control system.

The detailed scope of internal audit activities and functions with in the Capital Group includes, among other things:

  • identifying, analysing and assessing significant risks in the specific business areas, processes, systems and projects as part of audit assignments;
  • taking action during ongoing audit assignments and as a result of them to support the identification of threats and determination of risk in business processes;
  • reviewing and assessing the performance of the particular organisational units and systems in terms of their effectiveness, rationality and compliance with the Capital Group Strategy and internal regulations;
  • providing the Management Board and Supervisory Board/Audit Committee with reasonable assurance that the achievement of key and business objectives in the audited areas is not at risk;
  • analysing and evaluating the existing controls in terms of their effectiveness in operating activities and exercising of rational supervision;
  • providing reasonable assurance as to the effectiveness of the system of internal control and supervision as well as risk management;
  • preparing post-audit recommendations to improve the functioning of systems, risk management processes and controls in the audited areas;
  • advising on system solutions and business process improvements;
  • planning internal audit activities and reporting them to the governing and supervising bodies;
  • cooperation with the supervising body;
  • implementation of the above-mentioned activities at Grupa KĘTY S.A. and its subsidiaries.

Internal audit operates on the basis of short-term planning in reference to the annual audit plan adopted by the competent authority, as well as on the basis of long-term audit plan drawn up for a period of 3 years, defining the direction of the Department activities and development.