APC 2014 Annual Report Download - page 163

CORPORATE GOVERNANCE
INTERNAL CONTROL AND RISK MANAGEMENT
Annual internal audit plans are drawn up based on risk and control Within the department, the Management Control and Accounting
concerns identified by Senior Management, taking into account the unit plays a key role in the internal control system by:
results of past audits, the work performed by the statutory auditors drafting and updating instructions designed to ensure that
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and the results of internal control self-assessments returned by the statutory and management accounting practices are consistent
units. When necessary, the audit plan is adjusted during the year to throughout the Group and compliant with applicable regulations;
include special requests from Senior Management. The internal organizing period-end closing procedures;
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audit process is described in the Section «Control procedures»
analyzing performance and tracking the achievement of targets
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below.
assigned to the operating units.
After each internal audit, a report is issued setting out the auditors’
The Management Control and Accounting unit is
findings and recommendations for the units or function audited.
Measures are taken to monitor implementation of
recommendations and specific audits are conducted if necessary.
responsible for:
The audit reports and the implementation of its recommendations the proper application of Group accounting principles and
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are distributed to Senior Management and to the Audit Committee. policies;
The statutory auditors also have access to the reports. the integrity of the consolidation system database;
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Internal Control Department
the quality of accounting and financial processes and data;
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training for finance staff by developing and leading specific
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seminars on the function;
The Internal Control Department, which reports to the Internal drafting, updating and distributing the necessary documents for
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Audit Department, is responsible particularly for: producing quality information.
defining and updating the list of Key Internal Controls in close
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The unit drafts and updates:
cooperation with the Global Functions and in line with the
recommendation of the AMF reference framework; a glossary of terms used by the Management Control and
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Accounting unit, including a definition of each term;
maintaining and leading a network:
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the chart of accounts for reporting;
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eleven business internal controllers in the Operating
–
Divisions and Business Units, with responsibility for ensuring
a Group statutory and management accounting standards
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the appropriation and implementation of the Key Internal
manual, which includes details of debit/credit pairings;
Controls in the operating units within their scope– notably
a Group reporting procedures manual and a system user's
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through annual self-assessments. They follow
guide;
implementation by the units within their scope of the internal
a manual describing the procedures to be followed to integrate
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control action plans defined following self-assessments or
newly acquired businesses in the Group reporting process;
internal control missions,
an intercompany reconciliation procedure manual;
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27 regional internal controllers to carry out training in the
–
units and on-site control of the accuracy of
account closing schedules and instructions.
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self-assessments and the efficiency of the remediation plans
The Management Control and Accounting unit monitors the
implemented as a result of the previous year’s
reliability of data from the subsidiaries and conducts monthly
self-assessments, by the units coming within their
reviews of the various units’ primary operations and performance.
geographic scope. After each internal control mission, a
The Finance and Control – Legal Affairs Department oversees tax
report is issued setting out findings and recommendations
and legal affairs, to provide comprehensive management of
for the attention of the persons in charge of the unit audited;
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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controllers 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 control missions and the implementation of monitoring of Group trade account receivable risk and the
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set action plans following self-assessments or internal control definition of the hedging policy to be implemented;
missions. the distribution of rules for financial risk management and the
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The committee work to improve internal control and adapt security of incoming and outgoing payments;
procedures in light of the results of self-assessments and changes the annual review of financial structures – balance-sheet
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in the business environment or organization. changes and financial risks – facing the Group’s companies
Finance and Control – Legal Affairs Department
during formal financial review meetings.
Procedures for managing financial risk are described in «Risk
Factors».
The Finance and Control – Legal Affairs Department is actively
involved in organizing control and ensuring compliance with
procedures.
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2014 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC