1. Mission and objectives of the internal audit

Mission

To plan and carry out internal audits and consultancy work, independently and systematically assessing critical activities and processes to contribute to improvements in the INCM's performance, control and governance.

Objectives/Purposes

The activities are aimed at contributing to and improving the following:

  1. The trustworthiness and integrity of information;
  2. Compliance with plans, procedures, laws, regulations, regulatory frameworks and others;
  3. The safeguarding of assets;
  4. The economic and efficient use of resources and the effectiveness of processes;
  5. The adequacy and effectiveness of risk management processes controls.

2. Position in the INCM's organisational structure and independence

The Internal Auditing (DAI) provides support to the Board of Directors and answers directly to its Chairman and to Fiscal Council, performing its functions with independence and objectivity.

DAI performs its functions with complete impartiality and objectiveness, respecting the professional conduct rules as confidentiality and reserve.

3. Scope and competences

3.1 Annual Activities Program

DAI performs audits in accordance with its the Annual Activities Program previously approved by the INCM's Board of Directors and submitted to Fiscal Council opinion. Amendments may be made to the Annual Activities Program.

3.2 Audit Plan

The Audit Plan is carried out without any type of constraint or restrictions, and all INCM processes or operations may be the subject of an internal audit.

3.3 Chief Audit Executive

The Chief Audit Executive must ensure that audits are planned and supervised in accordance with the procedures that are defined and set out in the audit manual. It's also responsible for ensuring full compliance with the principles stated in this Audit Charter, and for informing the Board of Directors if any factor prevents the functions from being performed.

3.4 Competencies

In the course of its work process, DAI is responsible for:

  1. Draw up the audit program based on an analysis of the risk areas to contribute to improvements to the INCM's internal control system;
  2. Accomplish the Annual Activities Program and the Audit Plans, according to the scope and objectives defined;
  3. Discuss the results of the audits carried out with the audited areas and services, based on reports with conclusions and recommendations. Define dates for the implementation of corrective or improvement actions and communicate the reports to the Board of Directors and / or audited areas of the company;
  4. Implementation control the corrective or improvement actions defined, through follow-up actions;
  5. Support INCM's Audit / Inspection Bodies;
  6. Internal consulting;
  7. Present an annual report of activities to the Board of Directors and Fiscal Council.

4. Requirements and applications of professional standards

During the course of its work, the internal audit team acts in accordance with the principles of prudence, impartiality, reasonableness, confidentiality and exemption.

DAI performs its activities in accordance with the "International Standards for the Professional Practice of Internal Auditing" of the Institute of Internal Auditors, as well as with the Code of Ethics of this body and with the principles, standards and regulations of the INCM.

5. Access to information

In accordance with its responsibilities and with the previously approved Audit Program, DAI has unrestricted and unconstrained access to all facilities, information and records necessary for the performance of its work.

All the requested information must be provided truthfully and exhaustively within a reasonable period of time. Any attempt to impede the DAI from performing its functions will be reported to the Chairman of the Board of Directors.

Any relevant situation regarding non-compliance with standards and procedures, or any situation that could lead to significant negative consequences for the INCM, must be immediately communicate to DAI..

6. Periodic assessment

In order to guarantee the quality of the activities carried out, DAI has implemented a system based on performance indicators, evaluated and reviewed annually.