APC 2013 Annual Report Download - page 163

CORPORATE GOVERNANCE
INTERNAL CONTROL AND RISK MANAGEMENT
results of past audits, the work performed by the statutory auditors Within the department, the Management Control and Accounting
and the results of internal control self-assessments returned by the unit plays a key role in the internal control system by:
units. When necessary, the audit plan is adjusted during the year to drafting and updating instructions designed to ensure that
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include special requests from Senior Management. The internal statutory and management accounting practices are consistent
audit process is described in the Section “Control procedures” throughout the Group and compliant with applicable regulations;
below. organizing period-end closing procedures;
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After each internal audit, a report is issued setting out the auditors’ analyzing performance and tracking the achievement of targets
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findings and recommendations for the units or function audited. assigned to the operating units.
Measures are taken to monitor implementation of
The Management Control and Accounting unit is
recommendations and specific audits are conducted if necessary.
The audit reports and the implementation of its recommendations
responsible for:
are distributed to Senior Management and to the Audit committee.
The statutory auditors also have access to the reports. the proper application of Group accounting principles and
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policies;
Internal Control Department
the integrity of the consolidation system database;
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the quality of accounting and financial processes and data;
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The Internal Control Department, which reports to the Internal training for finance staff by developing and leading specific
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Audit Department, is responsible particularly for:
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seminars on the function;
defining and updating the list of Key Internal Controls in close
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drafting, updating and distributing the necessary documents for
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cooperation with the Global Functions and in line with the producing quality information.
recommendation of the AMF reference framework; The unit drafts and updates:
maintaining and leading a network:
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a glossary of terms used by the Management Control and
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eleven internal business auditors in the Operating Divisions,
–
Accounting unit, including a definition of each term;
with responsibility for ensuring the appropriation and
the chart of accounts for reporting;
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implementation of the Key Internal Controls in the operating
units within their scope– notably through training sessions
a Group statutory and management accounting standards
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and annual self-assessments. They follow implementation
manual, which includes details of debit/credit pairings;
by the units within their scope of the internal control action
a Group reporting procedures manual and a system user's
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plans defined following self-assessments or internal audits,
guide;
27 internal regional auditors to carry out training in the units
–
a manual describing the procedures to be followed to integrate
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and on-site control of the accuracy of self-assessments and
newly acquired businesses in the Group reporting process;
the efficiency of the remediation plans implemented as a
an intercompany reconciliation procedure manual;
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result of the previous year’s self-assessments, by the units
coming within their geographic scope. After each internal
account closing schedules and instructions.
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audit, a report is issued setting out findings and
The Management Control and Accounting unit monitors the
recommendations for the attention of the persons in charge
reliability of data from the subsidiaries and conducts monthly
of the unit audited,
reviews of the various units’ primary operations and performance.
the internal auditors in the Operating and Regional Divisions,
–
The Finance and Control – Legal Affairs Department oversees tax
in their respective assignments, act in close cooperation
and legal affairs, to provide comprehensive management of
using standardized methods;
theserisks.
analyzing and critically reviewing the results of these
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self-assessments to identify areas that require an action plan at Within the Finance and Control – Legal Affairs Department, the
the Group, Operating Division or Global Function level; Finance and Treasury Department is responsible for:
leading the Internal Control Committee, comprising internal
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centralized management of cash and of all long-term Group
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auditors from the Operating and Regional Divisions, as well as financing;
internal control correspondents from the Global Functions; centralized management of currency risk and non-ferrous metals
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organizing and monitoring the roll-out of self-assessment
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risk;
campaigns, internal audits and the implementation of set action monitoring of Group trade account receivable risk and the
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plans following self-assessments or internal audits. definition of the hedging policy to be implemented;
The Committee members work to improve internal control and the distribution of rules for financial risk management and the
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adapt procedures in light of the results of self-assessments and security of incoming and outgoing payments;
changes in the business environment or organization. the annual review of financial structures – balance-sheet
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Finance and Control – Legal Affairs Department
changes and financial risks – facing the Group’s companies
during formal financial review meetings.
Procedures for managing financial risk are described in “Risk
The Finance and Control – Legal Affairs Department is actively Factors”.
involved in organizing control and ensuring compliance with
procedures.
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