AmazonScience/document-haystack

1Internal Control System for the Financial and Non-Financial 2Reporting Process3General4The Executive Board is responsible for establishing and maintaining an adequate internal 5control system to support the consolidated financial reporting process and the integrated 6non-financial Group statement. The control system comprises the principles, processes and 7measures to provide assurance regarding the reliability of financial and non-financial 8reporting and the preparation of the Group’s consolidated financial statements in accordance 9with IFRS and HGB.10Internal Control System for the Financial Reporting Process11Internal Control System Objectives12To mitigate financial reporting risk the internal control system has been established to 13provide reasonable but not absolute assurance against material misstatements. To support 14this we adopt the following objectives:15– Existence: Assets and liabilities exist and transactions have occurred 16– Completeness: All transactions are recorded, account balances are included in the financial 17statements18– Valuation: Assets, liabilities and transactions are recorded in the financial reports at the 19appropriate amounts20– Rights, obligations and ownership: Rights and obligations are appropriately recorded as 21assets and liabilities22– Presentation and disclosures: Disclosure, presentation and classification of financial 23reporting is appropriate24– Safeguarding of assets: Unauthorised acquisition, use or disposition of assets is prevented 25or detected in a timely manner26The internal control system covers both the financial reporting process of the entities 27included in the consolidated financial statements and the consolidation process itself. This is 28designed to ensure the consolidated financial statements are prepared in accordance with 29applicable rules and provisions.30The internal control system and risk management system as they relate to financial reporting 31form an integral part of our broader control environment.32Internal Control System Organisation33The Group organisational structure facilitates the operation of the internal control system 34with clear division of roles and responsibilities to support the financial reporting process and 35preparation of consolidated financial statements. The operation of the accounting related 36internal control system primarily involves staff based in the Chief Financial Office (CFO).37CFO is responsible for the periodic preparation of the financial statements. The two key 38control functions within CFO that contribute to the internal control system are the Group 39Controller and Financial Control Oversight.40The Group Controller is responsible for the financials of the Group and its consolidated 41subsidiaries. The Controller function sets the reporting timetables, performs the 42consolidation, controls and validates the period end results, executes adjustment processes, 43and compiles the Group financial statements. In addition, Product and Regional Finance 44teams are responsible for reviewing the quality of financial data by performing validation and 45control, in close contact with business, infrastructure and legal entity management.46Financial Control Oversight is responsible for implementation of the financial reporting 47control framework to minimise financial reporting risk. It also coordinates the evaluation and 48review of risk and control issues and performs ongoing assessment and monitoring of the 49effectiveness of the internal control system.50Financial Reporting Controls51We operate many controls over the financial reporting and consolidation processes. Some of 52the key controls that apply to these processes include the following:53– Consolidation and other period end reporting controls: Controls over consolidation, 54financial statement disclosure and presentation55– Accounting policy design and implementation: Controls are designed to ensure the 56consistent recording and reporting of business activities in accordance with accounting 57policies58– Balance sheet substantiation: Controls relating to the substantiation of balance sheet 59accounts are designed to ensure the integrity of general ledger account balances based on 60supporting evidence61– Valuation including the independent price verification process: Oversight over valuation 62processes by the Principal Valuation Control Council 63– Reconciliation controls, both external and internal: Inter-system reconciliation between 64relevant systems for all transactions, positions or relevant parameters65        66To our Shareholders Summarised 67Management Report68Consolidated 69Financial Statements Compensation Report Corporate Govern-70ance Statement71Supplementary 72Information DWS 2023 Annual Report73 74Compliance and Control7564 Internal Control System for the Financial and Non-Financial Reporting Process