Establishing an effective internal control and internal audit mechanism is an important part of our responsible and sustainable management approach. Through internal control and internal audit, we ensure the efficiency and continuity of our operations and the reliability of the reporting. The Board of Directors is responsible for the proper functioning of the internal control system and internal audit, and ensures the necessary coordination on behalf of the Board of Directors and CEO Board of Directors.

Our internal control system has been designed following international standards and best practices. Internal control system is integrated into business processes with policies, procedures and instructions so that our employees have the responsibility, knowledge and authority for the internal control processes. Efficiency of internal control systems is carried out with internal audit by Tofaş Internal Audit Department, and audit teams affiliated to Koç Holding and FCA are assessed through external audits conducted by independent audit firms. As a result of the audits performed, the necessary development activities for the areas that are open to improvement are carried out rapidly by the relevant departments.

The authority and responsibilities of the Internal Audit Directorate are determined in line with the Internal Audit Regulation. The Internal Audit Department reports directly to the Company CEO who is also a Member of the Board of Directors and is not affiliated with other units. Thus, the independence and objectivity of the auditors are guaranteed. The knowledge and skills of internal auditors are continuously strengthened by professional development activities.

The Audit Committee of the Board of Directors is responsible for the effectiveness of the internal audit systems, the evaluation of the operation and reporting to the Board of Directors about the actions to be taken for improvement.

In the scope of audit activities, inter-unit audits are also available. Unit representatives specialize in certain subjects and evaluate other units in line with their areas of expertise. In addition to internal audits, we carry out regular audit activities covering the sustainability issues such as environment, work and manufacturing conditions, ethics and quality for dealers and suppliers.