APC 2013 Annual Report Download - page 169

CORPORATE GOVERNANCE
INTERNAL CONTROL AND RISK MANAGEMENT
2013: the Internal Control System is now
the quarterly publication of dash board on the security function
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of the IT systems ;
incontinuous improvement mode
creation of a new entity part of the Security Direction in charge
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In2013, further efforts were made to improve the identification and of investigations (internal and external frauds) ;
control of global risks, the periodic reviews of results and in addition to the usual training actions, execution of awrareness
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performance, and to enhance auditing practices. The year was raising session/training on the enriched Key internal Controls
marked, for the internal control system, by the items set out above, enriched by the Control Environment process for eight hundred
in particular: managers conducted by regional internal control staff.
Specific actions have been conducted on the Principles of internal control self-assessment questionnaires were sent out to
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Responsibility : cover 90% of the Group’s consolidated sales (training managers
a complementary tool similar to the professional warning system
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in internal control practices, defining and implementing remedial
which enable to manage all the received alerts under the same action plans if needed).
protocols whichever the communication mode used ,
formalization of fithteen “Educational Kits for Managers”, to
–
support them in leading working sessions with teams on
ethical dilemma, possible types of behaviors and on the
behavior recommended by the Group ;
Internal control procedures governing the production and processing of 9.6 3
consolidated and individual company accounting and financial information
In addition to: reporting deadlines, required data and any necessary
adjustments;
its regulatory tasks;
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the Group's consolidated financial statements are analyzed in
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its responsibility for overseeing the close of accounts across the
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detail, to understand and check the main contributions by
Group; subsidiaries, as well as the type of transactions recorded;
its audits of the Group's results with respect to set targets (see
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accounting classifications are verified;
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“Internal Control Organization and Management: Finance and the preparation and approval of the statement of changes in
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Control – Legal Affairs Department”). equity and the cash flow statement are the key control points.
The Management Control and Accounting unit is tasked with The internal controls used to confirm the existence, completeness
overseeing: and value of assets and liabilities are based on:
the quality of reporting packages submitted monthly by
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each subsidiary’s responsibility for implementing procedures
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subsidiaries; providing an adequate level of internal control;
the results of programmed procedures;
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defining levels of responsibility for authorizing and checking
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the integrity of the consolidation system database.
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transactions;
In addition, the Management Control and Accounting unit ensures segregating tasks to help ensure that all transactions are
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that: justified;
given that the Group consolidated financial statements are
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the integration of statutory and management reporting systems
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finalized a few weeks after the annual and half-year balance developed to guarantee the completeness of transaction data
sheet date, subsidiaries perform a hard close at May31, and recorded in the accounts;
November30, of each year so that most closing adjustments for all of the subsidiaries apply IFRSwith regard to recognition
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the period can be calculated in advance; principles, measurement and accounting methods, impairment
the scope of consolidation as well as the Group’s interest and
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and verification;
the type of control (exclusive control, joint control, significant the checks and analyses as described above performed by the
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influence,etc.) in each subsidiary, from which the consolidation Management Control and Accounting unit.
method results are determined in cooperation with the Legal
Affairs Department;
the Management Control and Accounting unit issues
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instructions to the units on the closing process, including
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2013 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC