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REPORTS OF THE BOARD OF DIRECTORS
8
REPORT BY THE CHAIRMAN OF THE BOARD OF DIRECTORS
The table below summarises the main roles and responsibilities of each category of internal control player.
Internal control player
Internal control roles and responsibilities
Board of Directors
•
initiates and spearheads the internal control system by relaying clear information and guidelines;
•
is responsible for deploying the internal control system across the Group and ensuring that it functions effectively;
•
ensures that the internal control system is in line with the Group’s business strategy and risk portfolio.
Audit Committee
•
ensures that the Group has a consistent internal control system that is compatible with its overall business strategy and risk profile;
•
approves the internal control system and is regularly informed of the findings of audits and the recommendations implemented;
•
consults the management team in order to form an opinion on the construction and effectiveness of the internal control system;
•
ensures the effective functioning of the risk management process related to the preparation of financial information.
General Management
•
the Group’s General Management pilots the strategy, fixes the targets for the consolidated entities, allocates the necessary resources
for their achievement and monitors proper functioning.
Operations Committees
•
operations Committees are held each month between the Group’s General Management and the management team for each
division to review all management indicators. Specific attention is paid to development programmes for the different parameters
of quality, economic performance and respecting deadlines.
Finance Department
•
the Finance and Treasury Department, the Management Control Department, the Quality Department, the Legal Affairs Department,
and the regional and country financial directors play a central role in internal control due to their cross-disciplinary skills.
Operations management
•
is responsible for deploying the internal control system within the scope of its remit (i.e. BU, legal entity, country, department,
service) and ensuring that it functions correctly;
•
ensures that the internal control system is aligned with the structure, strategy, tactics and organisation of its scope of remit.
Operations
and support staff
•
are actively involved in implementing the internal control system;
•
carry out work and operations in compliance with the established internal control system;
•
inform management of any malfunctions and help establish remedial measures.
This system also involves the participation of external players, including
the Statutory Auditors. It is not part of the legal engagement of the
Statutory Auditors to assume ownership of the internal control and risk
management systems. Their responsibility is to review these systems
and to issue an independent opinion on their suitability. Each year
the Statutory Auditors perform a Group audit as part of their legal
engagement to certify the consolidated financial statements and to audit
the separate financial statements of Group companies. In compliance
with French commercial law, the certification of Assystem’s consolidated
and parent company financial statements is carried out by two Statutory
Auditors, who jointly examine all the financial statements, the methods
used for their preparation and specific internal control procedures
related to the preparation of financial and accounting information. The
Statutory Auditors present their observations concerning the Chairman’s
report and the internal control procedures relating to the preparation
and processing of accounting and financial information, and they certify
that the other information required by law has been disclosed.
8.1.3.2
Internal control objectives
The Group’s internal control system aims to provide appropriate and
reasonable assurance of:
●
the reliability of financial information;
●
compliance with the applicable legislation and regulations;
●
the proper functioning of internal processes, such as those used to
safeguard the Company’s business and assets;
●
the application of instructions and guidelines stipulated by the Board
of Directors.
More generally, it helps the Group manage its business activities and
ensure the effectiveness of its operations and the efficient use of its
resources.
In line with the above, the internal control system has five main objectives which can be summarised as follows:
Objective
Reasonable assurance
Finance
That the financial information produced and published is reliable.
Compliance
That the applicable laws, regulations, standards and all other obligations are respected.
Operations
That operations, activities and processes work effectively and efficiently.
Integrity
That assets (human, tangible and intangible) are secure and protected.
Strategy
That the Group’s strategy and the resources implemented to deploy it serve objectives of growth, profitability
and sustainability of activities.
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ASSYSTEM
FINANCIAL REPORT
2015