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Auditing

08/06/2012 - 08:58 AM

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Some details on the  performed audits

The assessments carried out by the auditing firm appointed by the Authority on the regulatory accounting documentation are stated in the Tender for the selection of the Auditor, issued by AGCom in December 2009 with Decision 747/09/CONS; in short, they include the following:

  • analysis of the Telecom Italia S.p.A. financial statements’ auditing results obtained by collecting and assessing with the body in charge of this Audit all the data, information, descriptions of procedures and any documentation  needed to carry out the appointed task;
  • assessment of the accuracy and consistency with statutory accounts of the Regulatory Accounting results;
  • consistency assessment of the nature of the costs assigned to the so-called primary costs  according to their subdivision in depreciation & amortization, personnel and external costs;
  • tracing of the data used  to draw up the Regulatory Accounting;
  • consistency assessment of the accounting and statistical data shown in the Regulatory Statements with accounting and statistical operating data as well as other reference sources;
  • where necessary, consistency assessment of the data used in Regulatory Accounting and the relevant data found in operating systems;
  • analysis of the criteria  to allocate the costs and of the capital employed;
  • detailed costs’ assessment by network elements, routing factors and volumes underlying each service;
  • assessment of internal transfer charges on the basis of the criteria set forth in the regulation in force and the relevant volumes;
  • assessment of the unit costs underlying the economic conditions of each service included in Telecom Italia’s reference offers and indication of any difference between prices and unit costs for each service;
  • assessment of the correct calculation of current costs on the basis of the criteria set forth in Decision n. 399/02/CONS and the regulation in force and those applied in national and international practice;
  • recommendations and observations on the main critical issues emerging in the auditing.

The Auditor used a multinational audit team consisting of professionals with different qualifications and expertise and with previous experience in the specific areas of Regulatory Accounting and Current Cost Accounting. The team worked up to March 2012 with the support of the specialised staff of the Public and Regulatory Affairs Department, and the cooperation of all the other company departments that are proprietors of the data used in the regulatory  statements, in order to verify their correctness and compliance with the regulations in force.

The  review undertaken by the Auditor is characterised by a particular breadth and depth. They not only assessed the methodologies used, but also traced and verified the data processing in the Accounting Separation regulatory system. Activities also regarded the assessment of input data (revenues, costs, capital employed, commercial and plant amounts) and the relevant systems fed by this data.

The auditing was completed with a judgment of compliance by the Auditor, confirming yet again the soundness of the Regulatory Accounting process, the system and the methods used.