Assystem - Registration Document 2016

8

REPORTS OF THE BOARD OF DIRECTORS

REPORT BY THE CHAIRMAN OF THE BOARD OF DIRECTORS

8.1.3.2 Internal control objectives The Group’s internal control system aims to provide appropriate and reasonable assurance of: ● 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 processes and the efficient use of its resources. ● the reliability of financial information;

The overall 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 accounting and financial 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.

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.

That the Group’s strategy and the resources put in place to implement it contribute to achieving the objectives of growth, profitability and business sustainability.

Strategy

8.1.3.3 Components of the internal control system The main procedures of the internal control system, in particular those relating to the preparation and processing of accounting and financial information, are described in the Section below, “Organisation, responsibilities, operating procedures and tools”. 8.1.3.3.1 ORGANISATION, RESPONSIBILITIES, OPERATING PROCEDURES AND TOOLS Organisation The Group’s organisational structure is largely decentralised, which by definition results in a high degree of delegation of operational, functional and legal responsibilities to company officers and managers. Its internal control system and information systems therefore need to be adapted to this structure in order to effectively contribute to monitoring its operations. Delegations of authority and responsibilities are drawn up in writing after approval by management. The Group’s Code of Conduct, validated by the Board of Directors, is available to all employees.

Responsibilities The responsibilities assigned to employees are set out in writing in job descriptions which are validated by their line managers and supplemented, where applicable, by delegations of authority. Job descriptions help to clarify the nature of the work and transactions for which the employees are responsible by clearly describing the type and method of supervision applicable and by integrating, where required, the internal control dimension by setting out their responsibilities related to complying with and updating procedures, etc. The delegations of authority describe the permanent or temporary transfer of responsibilities and chiefly relate to the departments involved in financial transactions (incurring and authorising capital expenditure, ceilings set regarding procurement, supplier payments, etc.). The bank signing powers put in place at local level must reflect these delegations of authority as closely as possible. Having suitable resources to achieve its objectives is essential for the Group, notably due to the high levels of staff turnover. The Human Resources Departments play a key role in guaranteeing this suitability. In conjunction with the Operations Departments, they draw up staff training plans and coordinate annual performance appraisals during which the achievements for the past year are reviewed, targets for the following year are set and the skills that need to be acquired or consolidated are identified.

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ASSYSTEM

REGISTRATION DOCUMENT 2016