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

B – Group Finance policies & procedures

D – Monitoring and control

processed in the subsidiaries. These policies and procedures are procedures to control how financial information is recorded and They cover a number of elements: discussed with the statutory external auditors before issuance. Group Finance has drawn up a number of Group policies and accounting principles, guidelines on how financial information Financial accounting policies cover Group reporting and • standards. They also specify the accounting principles to be must be prepared, with common presentation and valuation forecasts and submit actual financial reporting required for followed by Atos entities in order to prepare budgets, applicable in the Operations, are regularly updated. (GRDs), internal guidelines for IFRS and accounting rules Group consolidation purposes. Group Reporting Definitions order to disseminate these policies and procedures within the Training and information sessions are organized regularly in staff to facilitate the sharing of knowledge and issues raised by Group. A dedicated Intranet site is accessible to all accounting members of the Atos financial community. budgets, forecasts and financial statements by subsidiary is Instructions and timetable: Financial reporting including • closing process. with statutory auditors to coordinate the annual and half-year by specific instructions and procedures. Group Finance liaises performed in a standard format and within a timetable defined financial information. They have strongly structured the maintenance of a control system related to accounting and They also provide ongoing monitoring and analysis capabilities. processes and have enabled automated preventive controls. Information systems play a key role in the establishment and An integrated ERP system supports the production of subsidiaries within the Group except for those recently acquired. accounting and financial information in almost all the financial reporting (operational management reporting and A single group reporting and consolidation tool is used for on a standalone basis in order to be consolidated at Group level. statutory data). Each subsidiary reports its financial statements reviewed by Group Finance. reported as part of the mainstream financial information and are entries linked to the Group consolidation remain under the direct There is no intermediary consolidation level and all accounting control of Group Finance. Off balance sheet commitments are their effects to improve and streamline processes, with benefits programs, as well as other transformation initiatives, will pursue entities will be fully integrated in Atos internal control system. for the Internal Control System. In particular, recently acquired In 2017, financial, commercial and social development monitored to ensure that proper attention is given to those Initiatives identified through the updated risk mapping will be topics. program updated following the risk assessment performed in 2016, and the follow-up of its recommendations. The Internal Audit department will pursue the internal review C – Information systems

information complies with all applicable policies, rules and control processes aims to ensure that accounting and financial instructions. In addition to the financial processes defined, monitoring and GBUs. It requires the main subsidiaries to complete a standard Internal Control) has been deployed at local level across all The Closing File (which is closely linked with the Book of key internal controls performed over financial cycles and provide electronic closing file on a quarterly basis in order to formalize created by Group Finance illustrate the expected level of control appropriate back up to support closing positions. Templates for the main items. Functional reviews are performed by Group financial support such as tax issues, pensions, litigations, off balance sheet items functions on significant matters relating to financial reporting, or business performance and forecasts. Operational and financial reviews : Group Controlling supports Operations and general management in the decision strong link with country and division management in performing making process through monthly reviews and by establishing a operations and improving the accuracy and reliability of financial analysis and monitoring, enhancing control over information reported to the Group. Representation letters : During the annual and half-year each subsidiary are required to certify in writing that: accounts preparation, the management and financial head of they have complied with the Group’s accounting rules and • policies; they are not aware of cases of proven or potential fraud that • may have an impact on the financial statements; corresponding actions; and management enable the Company to execute the the estimated amounts resulting from assumptions made by • respective subsidiaries. dysfunction in the control systems in place within their to the best of their knowledge, there was no major • Internal Audit department : The review of the internal control procedures linked to the processing of financial information is a department on an ongoing basis. The Internal Audit department key component of the reviews conducted by the Internal Audit to focus its audit plan accordingly. works together with Group Finance to identify the main risks and

Outlook and related newprocedures to be implemented G.3.2.5

Conclusion to internal control and procedures implemented by the Group. Based on the above, we have no other observation with regard and that all risks will have been completely eliminated. guarantee that the Group’s goals in this respect will be achieved level of internal control even if they cannot provide an absolute The above elements participate to guarantee the appropriate Thierry Breton Chairman & Chief Executive Officer

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