The legal audit is carried out by a company named, at the proposal of the Board of Statutory Auditors, at the Shareholders’ Meeting, from among those auditors listed in the relevant register.
The audit of the annual financial statements, of the consolidated financial statements, and of the interim twice-yearly financial statements for the years 2008 - 2016 was awarded to Reconta Ernst & Young S.p.A., Italian branch of the Ernst & Young network, which was also given the role, via their branches present in the various countries where Pirelli operates, of auditing the financial statements of the Pirelli Group’s main companies.
Head of the independent auditors for Pirelli & C. S.p.A. is Dr. Pietro Carena.
The auditing company is called upon to check preparation of the report on corporate governance and the ownership structure, and to express the so-called “opinion on the consistency" of any information reported in this Report.
The auditing company annually defines a plan of activity which is communicated to the ARSCGC.
The remuneration paid to Reconta Ernst & Young (and to the companies belonging to its network) are reported in detail in the notes of the financial statement and consolidated financial statement of Pirelli & C. as of 31 December 2014. During the meetings convened for approving the annual financial reports, there is also provision of an account of the hours worked and of the corresponding remuneration paid to the auditor in the relevant year.
The ARSCGC and the Board of Statutory Auditors also established, in 2011, a procedure for Pirelli to confer roles (particularly "non-audit” roles) to companies belonging to the Ernst & Young network, by establishing the necessary prior and express authorisation of the Chief Financial Officer who, with the help of the Internal Audit Manager, is able to check that the appointment is not among those disallowed by the Consolidated Law on Legal Auditing, and that, in any event, its characteristics do not impact upon the independence of the auditor. The Board of Directors, after assessment by the ARSCGC, has verified and approved the statement on appointments (in particular those of a "non-audit” type) made in the financial year.
Moreover, all of the appointments incurring remuneration in excess of 50 thousand euro must still be subjected to prior assessment by the Board of Statutory Auditors, notwithstanding the existence of explained and specific reasons (i.e. appointments not included in the auditing services that legislation and regulations expressly state must be carried out by the Auditor). The Internal Audit Manager provides, to the aforementioned Committee and to the Board of Statutory Auditors, at least quarterly, a list of non-auditing services conferred to the Auditor.