Internal Control

Internal Control Structure

Cementos Argos has the following internal control structure:

• Audit, Finance and Risks Committee:

Committee that supports the Board of Directors in the supervision of the effectiveness of the internal control system, the risk management system, the sufficiency and reliability of the financial information for decisions related to control, improvement of the company’s operations, and performance of directors and high management.

• Internal audit department:

It is the department responsible for internal audit, which carries out independent and objective activities of assurance and consultation which are designed to add value and improve the company’s operations. Contributes to the achievement of the objectives by providing a systematic and disciplined approach to assess the effectiveness of risk management, control and governance processes.

It also contributes to the identification and prevention of risks and communicates improvement opportunities, using knowledge, information and technology.

The Internal Audit department is integrated by a multidisciplinary team of auditors distributed in the three regions where Cementos Argos operates.

• Risks department

Is the department responsible of the administration of our risk management system. The system focuses on identifying risks considered material from a strategic perspective, allows risks administration by processes, projects and facilities in all operations of the company and endeavors business continuity.

This approach allows the alignment of topics as environmental management, communities, security, regulations and financial aspects, among others, having a global management approach that supports the successful execution of the corporate strategy and the achievement of objectives, being risk management responsibility of all employees.

• Compliance department

The department responsible of promoting a culture of ethics, transparency and regulatory compliance in the organization and of preventing behaviors contrary to the Code of Business Conduct and its associated policies. Among its functions is structuring, reviewing, communicating and monitoring the codes, policies, guidelines, controls and measures defined by the authorities or that are voluntarily adopted by Cementos Argos for the correct performance of the company in corporate governance, transparency, conduct or prevention of fraud, corruption, money laundering, terrorist financing, anti-competitive behaviors or any other misconducts.

• External Audit

The external auditor is an independent company with international prestige, whom performs the functions set forth in the Code of Commerce and other applicable regulations, as well as the activities prescribed by the Shareholders Assembly, as long as they are compatible with its legal obligations.

The fees for the tax audit service of Cementos Argos S.A. during 2022 represented 0.99% compared to KPMG’s income related to its tax auditing activity in the same year.