QUADIENT - 2019 Universal Registration Document

RISK FACTORS AND INTERNAL CONTROL Internal control and internal audit procedures

Internal control and internal audit 4.3 procedures

4.3.1

INTERNAL CONTROL MAINFRAME

As part of the organization of the internal control and for the preparation of this report, Quadient adheres to the AMF reference framework. In accordance with the AMF definition, the Company has designed and implemented its internal control system to ensure: reliability of financial information; ● compliance with existing laws and regulations; ●

implementation of the instructions and directions given ● by Group management; proper functioning of the Company’s internal processes, ● especially those relating to the protection of its assets. On a general level, the internal control system helps the Company monitor its activities, improves the efficiency of its operations and ensures the efficient use of its resources.

4.3.2

INTERNAL CONTROL ORGANIZATION

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Quadient internal audit function was set-up early 2009, its purpose is to serve the Group at three levels:

audits and conduct audits on regular basis. They are selected in accordance of the skills required for each audit. This structure gives the Group access to a wide range of skills. The internal control department reports to the Group finance department, and is able to address all topics without restriction. It also reports to the audit committee twice per year: audit plan, main internal audit conclusions, specific projects such as antitrust policy, risk assessment, whistle-blowing implementation in the United States, new acquisitions, etc.

identify and assess risk; ● conduct internal audits; ● coordinate internal control. ●

The Group’s internal control department coordinates the work of a network of specially trained non-permanent Auditors comprising the chief financial officers and financial controllers in the various Group companies. 65 people have received training in internal control and

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UNIVERSAL REGISTRATION DOCUMENT 2019