Atos - Registration Document 2016

G Corporate governance and capital

G.3 Report of Chairman of the Board of Directors on corporate governance and internal control

Internal Audit is ensuring, through its reviews, that the internal development of internal control procedures. Internal Audit also control procedures are properly applied and supports the action plans for continuously improving internal control defined, in partnership with Group and Local management, business. All assignments have been finalized by the issuance of related division or country. an audit report including action plans to be implemented by the Resources, Purchasing, Sales) and 24 related to Operations/core system: 27 in the domain of support functions (Finance, Human In 2016, Internal Audit carried out a total of 51 audit management) assessing the functioning of internal control assignments (including investigations at the request of general recommendations is performed by Internal Audit with concerned Twice a year, a full review of high and medium open 2016, circa 85% of audit recommendations have been owners, and reported up to the Group Executive Committee. End implemented in due time. meeting the compliance requirements to maintain the “payments Internal Audit has also actively contributed to help the business institution” status for Worldline Belgium. An annual assessment has therefore been included in the audit plan. providers who run processes on behalf of Atos, notably in the performed by independent auditors for the main service general ledger accounting processing. areas of payroll processing, accounts payable management or Audits on Service Organization Controls (SOC) have been processes. and Finance Directors of the Divisions. This Committee deals with cross functional topics critical to the Group; Directors according to the agenda). It deals with operational from the GBUs, Treasury and Controlling Directors (and other topics and GBU specific issues. the Operational Finance Committee (OFC) comprises CFOs • the financial function, contributes to the full alignment of key case for the other support functions, reinforces the integration of operational entities of the Group. finance processes and provides an appropriate support to A direct reporting line to the Group Finance Function, as it is the The Group Finance department is in charge of piloting the monitoring of compliance matters, supply of expertise and financial processes , especially through financial consolidation, reviews significant accounting options and positions, as well as control of the reported financial information. Group Finance required corrective actions. potential Internal Control weaknesses, and it initiates any

D – Control activities

Control (BIC). This document, sent out to all entities by the Atos key control activities are described in the Book of Internal addressing the key control objectives of each process to achieve general management, complements the different procedures by

an appropriate level of internal control.

It doesn’t cover only the financial processes, but also the various Offering Lifecycle, HR Management) and Risk & Compliance operational processes (Opportunity to Order, Order to Cash,

activities (Security, Legal, Sustainability).

improvements in various processes. This framework will continue in order to take into account additional controls and some emerging risks. to evolve, according to growing maturity of processes and released and distributed throughout the Group in January 2016, An updated version of the Book of Internal Control has been detailing control activities related to client service. This An IT control framework (part of the BIC) has been defined, several Atos clients. framework has been used to issue “ISAE3402” reports (1) for Audit missions. Group and Local Management, and is also supported by Internal Monitoring of internal control system is the responsibility of the Control self-assessments are performed by the main Functions at Group level. Action plans are initiated when deviations were through questionnaires filled by GBUs/Countries, and reviewed E – Monitoring

reported.

Systems related to accounting and financial information G.3.2.4 system and are carefully monitored due to their sensitive nature: financial processes, which are part of the Group Internal Control The financial governance of the Group supports a set of global

forecasting, consolidation and reporting, treasury, credit risk finance processes: general accounting, budgeting and • management; “expert” functions processes: taxes, insurance, pensions, real • estate transactions; business model. operational processes: bidding, contract execution, financial •

G

A – Local and Group financial organization

chaired by the Group CFO: two main Committees that meet on a bi-monthly basis and are The management of the Finance function is performed through Directors of the main functions within the Finance organization the Group Finance Committee (GFC) is composed of the •

controls at a service organization used for auditor’s report on internal control of a service to a third party. Activities of Atos typically ISAE3402 (International Standards for Assurance Engagements (ISAE) No. 3402). A global assurance standard for reporting on (1) “ISAE3402 reports” for the controls ensured by Atos. have an impact on the control environment of its clients (through information systems), which may require the issuance of

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