HERMES_REGISTRATION_DOCUMENT_2017

1

OVERVIEW OF THE GROUP

INTERNAL CONTROL AND RISK MANAGEMENT PROCEDURES

s the Managing Directors and Finance Directors of the subsidiaries, who have primary responsibility for the quality of the financial infor- mation preparation processes applied by the entities they oversee. They are also responsible for circulating procedures drawn up and issued by Hermès International and for ensuring that these are pro- perly applied. Procedures for preparing published accounting and financial information The procedures that Hermès has implemented in drawing up the finan- cial statements aim to ensure the following: s that published accounting and financial information is impartial, objective and relevant in the light of user requirements, that it meets reporting deadlines ( via a timetable for closing the accounts), and that the information is understandable; s that year-end consolidated account closing procedures that meet these criteria are drawn up and circulated to all consolidated enti- ties, namely via the Group management manuals, and instructions sent to the subsidiaries;

s the traceability of closing accounting entries within the information systems; s that individual accounts are controlled to ascertain that they comply with Group accounting standards and practices and to verify their consistency prior to integration of the consolidation packages, inter alia; s that systems are in place for analysing the accounts, such as reviews conducted by the auditors, verification of consolidation transac- tions, ascertaining that IFRS have been properly applied, analysis of internal transactions, etc. The reporting and consolidation proce- dures call for the controls required to ensure the reliability of financial information. Finally, in the context of these audits, A&RMD coordinates its work with the Statutory Auditors in order to ensure the consistency and effective- ness of their joint involvement.

46

2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL