Our internal control and internal audit processes allow us to increase the effectiveness of our activities and ensure their continuity, while also safeguarding the reliability of our reports. Having an effective internal control and internal audit mechanism is a significant part of our responsible and sustainable governance approach. The Board of Directors is responsible for proper functioning of the internal control and audit system. Members of the Board of Directors and CEO coordinate the procedures on behalf of the Board of Directors.

Our internal control system was developed in accordance with international standards and best practices, which was then integrated into business processes through policies, procedures, and instructions in order for our employees to assume responsibility, gain knowledge and competence with regards to the internal control processes. Internal control systems are checked by the teams working with Tofaş Internal Audit Department, audit teams affiliated to Koç Holding and FCA, and through external audits performed by independent audit companies. Such audits help detect the areas that are open for improvement, and required actions are taken promptly by relevant units to develop these areas.

The objective, authority and responsibilities of the Internal Audit Department are defined in the Internal Audit Regulation. The Internal Audit Department has no hierarchical relation with other units, and reports directly to the CEO of the Company, who is also a Member of the Board of Directors. This measure was taken to guarantee the independence and objectivity of auditors. The knowledge, skills, and abilities of internal auditors are strengthened with continuous occupational development activities.

The Audit Committee affiliated to the Board of Directors is responsible for analyzing the effectiveness of the internal audit systems, and checking how they function. The actions to be taken for improvement, which are defined based on the analysis made, are reported to the Board of Directors by the Audit Committee.

Apart from the audit procedures mentioned above, inter-unit audits can also be performed. In other words, unit representatives specialize in certain areas and assess other units. In addition to the internal audits carried out within the company, we regularly audit our dealers and suppliers to see their sustainability levels. During these audits such areas as environment, working and manufacturing conditions, ethics, and quality are addressed.