Establishing an effective internal control and internal audit mechanism is a significant part of our responsible and sustainable governance approach. Our studies regarding internal control and internal audit allow us to ensure the efficiency and continuity of our operations and the reliability of the reports. The Board of Directors is responsible for the proper functioning of the internal control system and internal audit, and the necessary coordination on behalf of the Board of Directors is provided by a Board Member and the CEO.

Our internal control system has been designed in accordance with international standards and best practices. To ensure that employees have the responsibility, knowledge, and authority for the internal control processes, the internal control system is integrated into business processes through policies, procedures, and instructions. The efficiency of internal control systems is assessed through internal audits conducted by the Internal Audit Department of Tofaş and external audits conducted by audit teams affiliated to Koç Holding and FCA as well as by independent audit firms. The improvement activities addressing the areas in which areas of improvement are found as a result of the audits performed are carried out rapidly by the relevant departments.

The authority and responsibilities of the Internal Audit Department are determined in line with the Internal Audit Regulation. The Internal Audit Department reports directly to the CEO of the Company, who is also a Member of the Board of Directors and has no hierarchical relation with other units. This ensures the independence and objectivity of the auditors. The knowledge, skills and abilities of internal auditors are improved with continuous professional development activities.

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

In the scope of internal audits, units may be audited by other units. Unit representatives become specialized in certain subjects and evaluate other units in line with their areas of expertise. In addition to internal audits carried out within the company, we conduct regular audits of dealers and suppliers regarding sustainability issues, including environment, working and manufacturing conditions, ethics, and quality.