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G
Corporate governance and capital
G.3
Report of Chairman of the Board of Directors on corporate governance and internal control
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B
– Group Finance policies & procedures
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
forecasts and submit actual financial reporting required for
followed by Atos entities in order to prepare budgets,
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
applicable in the Operations, are regularly updated.
(GRDs), internal guidelines for IFRS and accounting rules
Group consolidation purposes. Group Reporting Definitions
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.
order to disseminate these policies and procedures within the
Training and information sessions are organized regularly in
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
C
– Information systems
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
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
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
D
– Monitoring and control
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
created by Group Finance illustrate the expected level of control
appropriate back up to support closing positions. Templates
for the main items.
key internal controls performed over financial cycles and provide
electronic closing file on a quarterly basis in order to formalize
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
operations and improving the accuracy and reliability of
financial analysis and monitoring, enhancing control over
information reported to the Group.
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
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
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
procedures linked to the processing of financial information is a
Outlook and related newprocedures to be implemented
G.3.2.5
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
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