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104 2014 Registration Document
Corporate governance
3
Internal control
The
Group Internal Audit
department
is tasked with:
■
assessing the operation of the internal-control and risk-management
systems related to asset risks, by performing the missions included
in the annual audit plan;
■
regularly monitoring and making any necessary recommendations to
improve these systems;
■
leading and consolidating the annual self-assessment campaigns to
develop internal-control tools as carried out by the executive director.
The Board of Directors
reports on the principal risks and uncertainties
faced by the Group in the management report.
It takes note of the essential characteristics of the internal-control and
risk-management systems communicated in a timely manner by the
Accounts Committee and general management. In particular, it acquires
an overall understanding of procedures relating to the production and
treatment of financial and accounting information.
The role of the
Accounts Committee
set up by the Board of Directors is:
■
to assess the effectiveness and quality of the Group’s internal control
systems and procedures, to interview the internal audit manager,
to give an opinion on the organization of the department and to be
informed of its program of work;
■
to examine, in conjunction with internal control managers, the objectives
and intervention and action plans in the area of internal audit, the
conclusions of such interventions and the actions, recommendations
and follow-up arising from them;
■
to examine the methods and results of the internal audit and check that
the procedures used help the Financial Statements to reflect a true and
accurate picture of the business in accordance with accounting rules;
■
to assess the reliability of the systems and procedures used to produce
the Financial Statements and the validity of the positions taken in
respect of presenting significant transactions;
■
to examine the methods used to report and present accounting and
financial information from the subsidiaries and/or operational units;
■
to examine the draft report on internal control procedures.
◗
B.
At country level
The
Country Executive Director
, is responsible for the establishment,
operation and supervision of the internal-control and risk-management
system at country level. The country executive director is supported by
internal controllers, who are tasked with:
■
helping to define the country internal-control system, particularly by
ensuring that the Group internal-control framework is properly rolled
out;
■
ensuring that procedures defined by the country and the Group are
properly applied.
3.6.2
Data relating to internal accounting and financial control
In 2014, the Group continued to enhance its accounting and financial
internal-control system by boosting the role of the functional departments
and implementing the Corporate Rules.
3.6.2.1
General organizational principles
of internal accounting and
financial control
Internal accounting and financial control aims to ensure:
■
the compliance of published accounting information with applicable
rules (international accounting standards);
■
the application of instructions and strategic directions established
by the Group;
■
the prevention and detection of fraud and accounting and financial
irregularities;
■
the presentation and reliability of published financial information.
Risks related to production of accounting and financial information can
be classified into two categories:
■
those related to the accounting of current operations in the country,
whose control systems must be set as close as possible to decentralized
operations;
■
those related to the accounting of non-current operations that may
have a significant impact on the Group’s Financial Statements.
The internal-control system described in the following paragraphs
incorporates this approach to risk.
Management within each country is responsible for identifying risks that
impact the preparation of financial and accounting information and for
taking the necessary steps to adapt the internal-control system.
With regard to information that requires special attention given its impact
on the Consolidated Financial Statements, the Group Consolidation
department requests the necessary explanations and may perform such
controls itself, assign an outside auditor to carry out such controls or
request the involvement of the Internal Audit department through the
Chairman and Chief Executive Officer.
The Group Consolidation department checks the country-level
consolidated reporting packages at each quarterly closing. If need be,
corrections are made to the reporting packages. In addition, inspections
are conducted in each country at least twice per year.
Impairment testing of goodwill is handled by the Consolidation department
based on projections prepared by the countries. The Consolidation
department also obtains and reviews impairment tests performed by
the countries on tangible fixed assets.