The audit committee is a statutory and permanent body, responsible for undertaking technical and/or consultancy functions. Its members are appointed by the board of directors, to which the audit committee is subordinated. The audit committee, which does not have any decision-making power over the Company's activities, has the following responsibilities:
• voicing an opinion on retaining or discharging an independent auditor and supervising the activities of such auditor, as well as supervising the internal control areas, internal audit and the team in charge of preparing the Company's financial statements;
• monitoring the quality and integrity of internal control mechanisms, quarterly information, the Company's interim financial statements and financial statements, and information and measurements disclosed based on adjusted accounting data and on non-accounting data that may add unforeseen items to the structure of financial statements and reports;
• assessing and monitoring the Company's risk exposure, with the power to require detailed information on policies and procedures in connection with management compensation and the use of company assets and expenses incurred on the company's behalf;
• assessing and monitoring, jointly with management and the internal audit area, the adequacy and respective outcome of transactions with related parties performed by the Company; and
• preparing a summary of the annual report to be submitted with the financial statements, containing a description of:
(i) the committee´s activities, results, conclusions reached, and recommendations made; and
(ii) any situations in which there may be an express difference among the Company's management, the independent auditors and the audit committee regarding the Company's financial statements.