Econocom - 2019 Universal registration document

05 management report

corporate governance statement

The consolidation system is a standard tool. Risks associated with 5.3.5.2. accounting standards The Consolidation Department, in conjunction with the Group Financial Controlling Department and the Business and Country Financial Controllers, monitors changes in IFRSs and adapts the Group’s accounting principles accordingly. It also organises training for finance staff whenever necessary. Main transaction control 5.3.5.3. procedures In order to ensure the reliability of the financial information on transactions, the “Financial Control” team verifies each month that the revenue and costs reported are in line with the flows expected at the time the transactions were approved. The Group Financial Controlling draws up regular statistical analyses to ensure that the assumptions made when the lease contracts were recorded are prudent and appropriate. The subsidiaries’ Financial Controlling teams also carry out monthly verifications for each business line. PERSONS RESPONSIBLE FOR 5.3.6. THE PREPARATION OF FINANCIAL INFORMATION The financial information is prepared under the supervision and responsibility of the Board of Directors, which, since 2004, has had an Audit Committee, the role of which is set out in section ژ 5.5.3 below.

The Group’s Internal Audit Department completes the risk organisation, and is in charge inter alia of drawing up a risk map. It also reviews the subsidiaries’ financial statements in order to ensure that they comply with Group rules, and verifies that the reports are accurate and that risks are adequately covered. The Group’s Internal Audit Department reports directly to the Audit Committee and to the Chairman. When identifying risks that may impact the achievement of financial reporting objectives, Group Management takes into account the possibility of misrepresentations and fraud, and undertakes the required actions to strengthen internal control, if necessary. The Internal Audit conducts specific audits, on the basis of the assessment of potential fraud risks, in order to avoid and prevent fraud. Any findings are systematically Risks associated with accounting systems are assessed on a regular basis with a view to implementing improvement plans. The accounting systems used within the Group have now been harmonised, and are shared by all business lines and subsidiaries except the Satellite companies in which the Group has acquired stakes, some of which still use software other than that used elsewhere in the Group, more adapted to their size. The various business line IT systems are interfaced with the accounting system in order to ensure that information on transactions is traceable, comprehensive and reliable. reported to the Audit Committee. Risks associated with 5.3.5.1. accounting systems

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2019 annual report