Atos - Registration Document 2016

Corporate governance and capital

G.3

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

Atos

Registration Document 2016

265

– Control activities

an appropriate level of internal control.

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

activities (Security, Legal, Sustainability).

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,

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

– Monitoring

Audit missions.

Group and Local Management, and is also supported by Internal

Monitoring of internal control system is the responsibility of the

reported.

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

Internal Audit is ensuring, through its reviews, that the internal

processes.

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

2016, circa 85% of audit recommendations have been

owners, and reported up to the Group Executive Committee. End

implemented in due time.

recommendations is performed by Internal Audit with concerned

Twice a year, a full review of high and medium open

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

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

•

– 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

and Finance Directors of the Divisions. This Committee deals

with cross functional topics critical to the Group;

Directors of the main functions within the Finance organization

the Group Finance Committee

(GFC) is composed of the

•

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

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

The Group Finance department is in charge of piloting the

monitoring of compliance matters, supply of expertise and

financial processes

, especially through financial consolidation,

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