- the International Financial Reporting Standards;
- the Accountancy Act of 29 September 1994;
- the Articles of Association of Warsaw Stock Exchange;
- the Accounting Rules of Warsaw Stock Exchange and the accounting rules of the subsidiaries;
- internal accounting procedures.
The Company’s internal control system is a process executed in response to identified risks in order to ensure effective and safe operation in compliance with regulations. The internal control system includes:
- controls exercised by all employees as part of their responsibilities;
- functional controls exercised as part of responsibilities of supervision of organisational units by all employees in managerial positions;
- institutional controls exercised by a special unit, the Internal Audit Department, responsible for assessment of the activity and effectiveness of the internal control system in other organisational units of the Company.
Concerning the management of the risk of the preparation of financial statements, the Company monitors on an on-going basis amendments of external regulations and laws concerning the preparation of financial statements and prepares for their implementation, among others by training employees and using external advisory. The Company’s internal regulations are updated on an on-going basis to bring them in line with amended laws.
The Company’s Financial Reporting Section is responsible for enforcing internal and external regulations. The Financial Reporting Section is responsible for preparing financial statements under substantive supervision of and in co-ordination with the Chief Accountant and the Director of the Economic and Financial Department. The Company keeps its books of account using computer technology. Software installed in 2001 and upgraded in 2006 was in use until the end of July 2011. A new financial and accounting system was implemented in August 2011. The computer systems include embedded mechanisms protecting against destruction, modification or concealment of records. Controls are carried out at the stage of entering accounting records. In addition, financial and accounting processes are subject to independent external audits.
The auditor controls separate and consolidated financial statements every quarter. Quarterly financial statements for Q1 and Q3 as well as financial statements for six months are reviewed by the auditor while the annual financial statements are audited.
The Company’s Management Board and the members of the Exchange Supervisory Board are required to ensure that financial statements and activity reports comply with the requirements defined in the Accountancy Act of 29 September 1994. WSE’s Audit Committee which is part of its Supervisory Board controls the financial reporting process. Within its powers, the Audit Committee monitors the financial reporting process, financial audit functions, and the independence of the auditor. WSE’s auditor is appointed by the Exchange Supervisory Board by recommendation of the Audit Committee from among renowned audit companies. Auditors of subsidiaries are appointed by their Supervisory Board. The Audit Committee also supervises the organisational unit responsible for internal audit and monitors the effectiveness of internal control, internal audit, and risk management systems. The responsibilities of the Supervisory Board include assessment of the WSE Management Board’s reports on the activity of the Company and financial statements, and presentation of a written report on the results of the assessment to the General Meeting.
In the opinion of the Company, the division of tasks related to the preparation of financial statements in the Company, review of financial statements by the auditor, monitoring of the preparation and review of financial statements by the Audit Committee, and assessment of financial statements by the Exchange Supervisory Board ensure that information presented in financial statements is true and fair.