ternal control in operating companies
eineken is progressing on the group-wide
evelopment and implementation of uniform
•ocesses, common IT systems and control
ameworks based on best practices. At the end
2006, 71 per cent of Heineken's operations
ased on revenue) work in accordance with the
olving Heineken common system. In developing
id implementing common systems, risk
sessments were included and controls
tablished or adjusted. These internal controls
sure the integrity of the information processing
supporting the day-to-day transactions and
ancial and management reporting. In 2006,
rther progress was made on establishing
d using Heineken best practice Key Control
ameworks for testing and further improving
ntrols in the operations.
de of Business Conduct and Whistleblowing
ter the introduction of the Code of Business
nduct and Whistleblowing Procedure two years
o, almost the whole group has implemented
air local policies and procedures at the end
2006. The whistleblowing implementation is
be finalised in 2007. The Corporate office
closely monitoring the implementation and
ectiveness. The Integrity Committee oversees
e functioning of whistleblowing and issued
o reports to the Executive Board and the
dit Committee in the year under review
effectiveness of the procedure and
ported cases.
pervision
e Executive Board oversees the adequacy
id functioning of the entire system of risk
anagement and internal control, assisted
Group departments. Group Internal Audit
ovides independent assurance on the entire
k management and internal control system.
The Assurance Meetings at operating company and
regional level, oversee the adequacy and operating
effectiveness of the risk management and internal
control system. Regional Management and Group
Internal Audit participate in these meetings to
ensure effective dialogue and transparency.
The outcome and effectiveness of the risk
management and internal control systems have
been discussed with the Audit Committee of the
Supervisory Board.
Financial reporting
The risk management and control system over
financial reporting contains clear accounting rules
and a standard chart of accounts. The Heineken
common systems, as implemented in almost the
entire group in terms of turnover, support
common accounting and regular financial
reporting in standard forms.
The worldwide external audit activities - which
are based on local statutory requirements, and
therefore more detailed than necessary for the
audit of the Heineken N.V. consolidated figures-
provide additional assurance on fair presentation
of financial reporting on operating company level.
Within the parameters of their financial audit
assignment, external auditors also report on
internal control issues through their management
letters and attend local and regional Assurance
Meetings.
Considering Heineken's risk management and
control system described in this section, the
financial reporting is adequately designed and
worked effectively in the year under review
in providing reasonable assurance that the
2006 financial statements do not contain any
material inaccuracies. This statement cannot be
construed as a statement in accordance with the
requirements of Section 404 of the US Sarbanes-
Oxley Act, which is not applicable to Heineken N.V.
Heineken N.V. n—f
Annual Report 2006 *T#
