Inaccurate Financial Statements - Prevention & Detection of Financial Crimes The role of the Audit Committee & Internal Auditors 17 February 2015

1 © 2015 KPMG Certified Auditors A.E., a Greek Societe Anonyme and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. FINANCIAL STATEMENTS BOARD OF DIRECTORS IS RESPONSIBLE FOR PROPER FINANCIAL STATEMENTS

2 © 2015 KPMG Certified Auditors A.E., a Greek Societe Anonyme and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. FINANCIAL STATEMENTS ACCOUNTING IS NOT A SCIENCE IT IS AN ART

3 © 2015 KPMG Certified Auditors A.E., a Greek Societe Anonyme and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. FINANCIAL STATEMENTS UNDERLYING ASSUMPTIONS: ■GOING CONCERN ■PRUDENCY ■ACCRUALS ■MATERIALITY

4 © 2015 KPMG Certified Auditors A.E., a Greek Societe Anonyme and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. PROTECTION/PREVENTION PROPER SYSTEM OF INTERNAL CONTROL AND PROCEDURES SAFEGUARDS

5 © 2015 KPMG Certified Auditors A.E., a Greek Societe Anonyme and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. PROTECTION/PREVENTION BASIS OF A PROPER SYSTEM OF INTERNAL CONTROL AND PROCEDURES: PROCEDURES TO ENSURE CAPTURE OF ALL TRANSACTIONS PROCEDURES TO ENSURE LIMITATION OF RISK PROCEDURES TO ENSURE THAT NO SINGLE PERSON CAN COMPLETE A TRANSACTION WITHOUT THE INVOLVEMENT OF AT LEAST ONE MORE PERSON COMPETENT FINANCE DEPARTMENT

6 © 2015 KPMG Certified Auditors A.E., a Greek Societe Anonyme and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. SAFEGUARDS INTERNAL CONTROL AUDIT AUDIT COMMITTEE

7 © 2015 KPMG Certified Auditors A.E., a Greek Societe Anonyme and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. COMMON CHARACTERISTICS OF MAJOR CORPORATE FINANCIAL CRIMES INEFFECTIVE BOARDS POOR STRATEGIC DECISIONS OVEREXPANSION AND ILL-JUDGED ACQUISITIONS AUTOCRATIC / DOMINANT CEOS GREED, HUBRIS AND A DESIRE OF POWER FAILURE OF INTERNAL CONTROLS INADEQUATE REMUNERATION SYSTEMS POOR REGULATION LACK OF INVESTOR QUESTIONING (Hamilton 2009 & Centro de estudos em Governança Corporativa 2010)

Thank you Marios T. Kyriacou

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