TELEPERFORMANCE_Registration_document_2017

RISKS AND CONTROL

2.3 Internal control and risk management procedures

The statutory auditors The statutory auditors of the parent company carry out a limited review of the consolidated financial statements for the six months ended Juneb30 th and a full audit of the parent company and consolidated financial statements for the year ended Decemberb31 st . Senior managers must concert with the auditors, as the former are responsible for the preparation of the financial statements and the implementation of accounting and financial internal control systems. The auditors took part in all Audit Committee meetings. They informed the Audit Committee of their work on Group procedures, presented the Committee with their conclusions on the financial statements and reported on the key points raised during the audit. The auditors also presented their audit strategy to the Audit Committee. The Audit and Compliance Committee Matters related to financial information that were reviewed at Audit Committee meetings in 2017bare described in the section concerning the work of the Board of Directors. Operational processes related to the production of accounting and financial information Group procedures and best practices have been established in respect of the main operational processes used by subsidiaries for the production of accounting and financial information, particularly sales, payroll, purchases and fixed assets, in order to ensure that such entries are monitored and that they comply with the authorization and accounting rules set out in the AMF Reference Framework Application Guide . Use of the application guide The Group uses the Application Guide to review internal control procedures for the main processes used to post entries in the accounts, by implementing a self-assessment system for each subsidiary. Self-assessment questionnaires taken from the Application Guide and adapted to the Group and its business are completed yearly by all Group managers and Chief Financial Officers. The action plans put in place following this self-assessment are monitored by the Internal Audit Department. The results of the questionnaires and information on the monitoring of action plans are provided to Group management and presented to the Audit and Compliance Committee. A selection of the answers to the questionnaires from the main subsidiaries is also checked by those subsidiaries’ auditors. These questionnaires enable each subsidiary to review its financial and accounting information internal control procedures and to prepare the confirmation letters signed by the subsidiaries’ directors and forwarded to Group management. 2.3.5.3 Process of preparing accounting and financial reporting

Accounts closing The process of closing the Group’s accounts involves checks at every information reporting and processing stage, in accordance with a schedule set by the Finance Department and communicated to all subsidiaries. Information forwarded by subsidiaries is inspected by the head office consolidation staff, who eliminate internal transactions, test for consistency and check the items that pose the greatest risk. The accounts are consolidated at Group level, without any intermediate consolidation stage. The Group Finance Department therefore has sole authority to make consolidation entries. The published consolidated financial statements are prepared by the Group Finance Department on the basis of the most significant subsidiaries’ audited financial statements. The main accounting options and estimates used by the Group are discussed with the auditors before the accounts are finalized. Approval of the accounts The subsidiaries’ Chief Executive Officers give Group management a formal commitment, expressed in a letter of representation, that the subsidiary’s financial statements present a true and fair view of the subsidiary’s affairs, that they use the AMF Reference Framework , that no fraud has been detected and that all legal and regulatory provisions have been complied with. Finally, the consolidated financial statements are presented by the Group Chief Financial Officer to the Audit Committee, which examines them in preparation for the meetings and deliberations of the Board of Directors, which reviews and approves them. Financial communication The Group Finance Department, via its investor relations department, sees that all information is provided in accordance with market requirements, within the legal time frames and under the conditions stipulated by law and regulations in force, thus satisfying market requirements. Teleperformance applies best market practices in this area. The Group provides shareholders with an extensive database of information on its activities and the latest news via its website at www.Teleperformance.com. The Group also organizes regular meetings with the financial community, not only on the occasion of result disclosures, but throughout the year at the major European and US stock exchanges.

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Teleperformance bb - bb Registration documentbb 2017