SCH2017_DRF_EN_Livre.indb

1 Overview of the Group’s strategy, markets and businesses Internal control and risk management

E the Group’s consolidated financial statements are analyzed in detail, to understand and check the main contributions by subsidiaries, as well as the type of transactions recorded; E accounting classifications are verified; E the preparation and approval of the statement of changes in equity and the cash flow statement are the key control points. The internal controls used to confirm the existence, completeness and value of assets and liabilities are based on: E each subsidiary’s responsibility for implementing procedures providing an adequate level of internal control;

E defining levels of responsibility for authorizing and checking transactions; E segregating tasks to help ensure that all transactions are justified; E the integration of statutory and management reporting systems developed to guarantee the completeness of transaction data recorded in the accounts; E all of the subsidiaries apply IFRS with regard to recognition principles, measurement and accounting methods, impairment and verification; E the checks and analyses as described above performed by the Management Control and Accounting unit.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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