Effective the 2007 financial year, the E.ON Group’s Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standards. E.ON AG’s Financial Statements are prepared in accordance with the German Commercial Code.

 

As stipulated by German law, the Annual Shareholders Meeting votes to select the Company’s Independent Auditor.

 

The Audit Committee prepares the proposal on the selection of the Company’s Independent Auditor for the Annual Shareholders Meeting. In order to ensure the auditor’s independence, the Audit Committee secures a statement from the proposed auditors detailing any facts that could lead to the audit firm being excluded for independence reasons or otherwise conflicted. As part of its audit responsibilities, the Independent Auditor agrees to:

• promptly inform the Chairperson of the Audit Committee should any such facts arise during the course of the audit;
• promptly inform the Supervisory Board of anything arising during the course of the audit that is of relevance to the Supervisory Board’s duties; and
• inform the Chairperson of the Audit Committee of, or to note in its Audit Report, any facts determined during the audit that contradict the statements submitted by the Board of Management or Supervisory Board in connection with the Code.