The control function is a part of the internal control system comprised of all control mechanisms in processes running in the bank, independent monitoring of the application of such control mechanisms and reporting on the issue.
Preparation of data in source systems is subject to formalised operational and acceptance procedures. Creating a collection of accounting balances on the basis of the system of general ledgers of the bank takes place within a process covering respective internal controls. Manual adjustments are subject to special controls.
We continuously monitor changes in provisions and external regulations related to the preparation of financial statements and updates internal regulations on an ongoing basis as well as adjusting IT systems where necessary.
The process of monitoring the operational risk which occurs in the preparation of financial statements in the bank includes mechanisms which effectively ensure the security of IT systems. We have an established business continuity plan which covers also the IT systems used in the process of preparing financial statements.
Financial statements of mBank and the Group are prepared by the Financial Reporting Department. Consolidated financial statements are drawn up based on data submitted by Group subsidiaries. The Financial Reporting Department monitors the reporting packages prepared by the subsidiaries in terms of their correctness, completeness and coherence of data.
The responsibility for controlling the coherence and completeness of the bank’s accounting books and administering the model chart of accounts lies with the Accounting Department. Both Departments report to the Vice-President of the Management Board, Chief Financial Officer.
Financial statements are submitted to the Management Board of mBank for verification. The Audit Committee of the Supervisory Board receives quarterly financial statements before they are published. After consultations with the bank’s external auditor and the Members of the Management Board of the bank, the Audit Committee recommends whether the Supervisory Board should approve or reject annual financial statements.
The annual and semi-annual financial statements of mBank are respectively subject to an independent audit or review by a statutory auditor. The selection of the statutory auditor of the bank requires a resolution of the General Meeting. The Audit Committee of the Supervisory Board issues an opinion on the selection of the statutory auditor. In the subsidiaries, supervisory boards decide on the selection of the statutory auditor.
We abide by the principle regarding the rotation of statutory auditors. On April 18, 2018, the 31st Annual General Meeting of mBank selected Ernst & Young Audyt Polska Sp. z o.o. spółka komandytowa as the auditor to review the financial statements of mBank S.A. and the consolidated financial statements of mBank S.A. Group for the years 2018-2019. Ernst & Young Audit Sp. z o.o. sp. k. was also authorised to audit mBank’s financial statements and the Group’s consolidated financial statements earlier, i.e. in the years 2013-2015. In the years 2016-2017, PricewaterhouseCoopers Sp. z o.o. was the entity auditing the bank’s financial statements and the Group’s consolidated financial statements.
The procedures of co-operation of mBank and the external auditor ensure that all the important issues related to the recognition of economic events in the books and financial statements are being consulted on an on-going basis.
The aspiration to ensure the highest standards of financial statements is reflected in the high quality of reporting. In “The Best Annual Report 2017” contest organised by the Accounting and Tax Institute (IRiP), the results of which were announced in October 2018, mBank won the title “The Best of the Best” for the best annual report in the category of financial institutions for the sixth time in a row.