TELEPERFORMANCE_Registration_document_2017

RISKS AND CONTROL

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2.3 Internal control and risk management procedures

2.3.5 Description of the risk management and internal control system for published accounting and financial information

This section derives from the Application Guide for Internal Control Procedures Related to the Accounting and Financial Information Published by Issuers , taken from the AMF Reference Framework . Firstly, the accounting and financial risk management and internal control system is defined and described in terms of its scope, then the main information management and preparation processes are described. Information is also provided on how the AMF’s Application Guide was used by implementing a self-assessment system for each subsidiary. 2.3.5.1 Definition and scope The accounting and financial information risk management and internal control system ensures the preparation of reliable information that fulfills legal and regulatory requirements. The accounting and financial internal control system encompasses the processes used to manage and produce published information as well as the system for managing risks that could affect these processes, i.e . that could affect the reliability, due transfer and completeness of the information. Within the scope of preparation of the consolidated financial statements, the accounting and financial internal control process encompasses the parent company and consolidated companies (“the Group” as defined above). General organization The Finance Department has a corporate practice and an operational practice. These two practices manage the organization of accounting and financial matters within the Group. Corporate and operational practices Within the corporate practice, dedicated teams of specialists ensure the implementation of accounting and financial management, under the supervision of senior management, in the following areas: consolidation and reporting, treasury, internal audit and financial communication. The consolidation and reporting teams have joined together and are now managed by a single department, which also supervises the accounts of the holding company in Paris. The Treasury Department processes and centralizes movements of the Group’s funds, manages its means of financing and hedges exchange rate and interest rate risks. The Internal Audit Department reviews the internal control processes inherent in published accounting and financial information. The department dedicated to investor relations and the market reporting system is described below in the paragraph entitled Financial communication. 2.3.5.2 Management processes in the accounting and financial organization Organization and responsibilities

The operational practice includes the Chief Financial Officers in charge of the linguistic regions and Specialized services.

Responsibilities The preparation of the Group’s consolidated financial statements is the responsibility of the Group Chief Financial Officer, who relies on the Chief Financial Officers of the Group’s linguistic regions and subsidiaries. The latter, along with senior management, are in charge of implementing a financial organization that conforms to Group best practices and ensures that accounting and financial information is reliable and consistent for the purpose of the financial statements published by the parent company. The information system and management tool The consolidation of accounting information, monthly reporting and budgets are managed on a single information system used by all Group subsidiaries. This Group information system was implemented in order to meet information security and reliability requirements. It enables a detailed monthly financial report to be produced using the Group’s model. It also allows a precise analysis of the formation of cash flows and results and compares them with budgets. The Group information system is continually being updated in line with the Company’s requirements in terms of organization and management indicators. In terms of controls, the objectives of the consolidation and management system are: ■ to automatically control the consistency of financial data reported by subsidiaries; ■ to accelerate and ensure the reliable processing of reported information; and ■ to increase consistency through reporting tables and the production of formatted information. Accounting standards The Group’s accounting standards comply with IFRS issued by the IASB and adopted by the European Union. These standards have been used as the guidelines for preparing the consolidated financial statements since 2005. All consolidated subsidiaries are required to apply them. The Chief Financial Officers of all subsidiaries are familiarized with the accounting definitions and principles, which may be consulted on the Group consolidation and management system, to ensure that they are applied consistently across the Group and that all financial information complies with such standards. An Accounting Guide setting out the standards applied in the preparation of the consolidated financial statements may be downloaded from the Group intranet site. The Group Finance Department, with the help of the statutory auditors, keeps a constant watch on new IFRS under development, in order to alert management and anticipate their impact on the Group’s accounts.

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Teleperformance bb - bb Registration documentbb 2017