An important component of the ICS is carried out by the Internal Audit Department, the main objective of which is to assess the adequacy and functionality of Pirelli's control processes, by means of independent assurance and consultancy work. The work of the Internal Audit Department is carried out in line with the mandate given to it, and is approved by the Board of Directors with assessment by the ARSCGC.
The Internal Audit Director (who is not assigned responsibility for any operational area) reports, in hierarchical terms, to the Chairman and CEO and, in functional terms, to the ARSCGC and the Board of Statutory Auditors.
The Internal Audit Department operates on the basis of an annual audit plan that is approved first by the ARSCGC and subsequently by the Board of Directors.
The Internal Audit Manager reports quarterly to the ARSCGC and to the Board of Statutory Auditors, and sends twice-yearly reports on its activities to the Board of Directors, and it expresses an opinion on the suitability of the ICS.
A Group Compliance Department, which reports to the Legal and Corporate Affairs and group Compliance Manager (separate, therefore, from the Internal Audit Department), is called upon to work with the Group’s other departments in order to ensure constant alignment of internal regulations, processes and, more generally, of business activities, with the framework of applicable standards.