Atari 2010 Annual Report Download - page 176

ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
176
are presented to both the Audit Committee and the Board of Directors for discussion and approval. Based on these
discussions, the Group will establish remediation plans where required. Risks are separated into four major categories:
Strategic, Operational, Reporting and Compliance. The GRA for fiscal year 2010/2011 has been approved by the Board
of Directors at its July 22, 2010 meeting. The GRA will be evaluated on a semi-annual basis and accordingly, risks will
be reassessed upon subsequent review.
Risk factors are reviewed in section 8 of the Board of Directors’ Management Report included in this Registration
Document (see “Risks to which the business is exposed”).
(3) Responsibility for internal control
In addition to the Board of directors and pursuant to the Group's internal control policy, the management of operating
entities has direct authority for internal control. Finance management is responsible for the implementation of procedures
at the local level.
The internal control of processes that have an impact on the accuracy on the Group's financial information, whether of a
financial reporting nature (consolidation, financial accounting, etc.) or having to do with upstream operating procedures
(purchases, sales), is specifically under the authority of:
• The Chief Financial Officers at the Group or division level for the definition and design of internal control
procedures;
• The management of operating entities, regions, subsidiaries and the Group, for the supervision of the effective
implementation of internal control measures.
• The operational and legal restructuring of the Group will cause changes in its management. As changes take
place, roles and responsibilities in terms of internal control will be redefined.
(4) Internal control documents
Group procedures are communicated to affiliates and are comprised of the reporting methods and accounting policies
adopted by the Group's senior management. These procedures are continually updated for changes in accounting
policies, financial reporting requirements and consolidation methods. In fiscal 2010/2011, the Group is planning to
formally document these procedures.
Detailed reports on key oversight of processes that have an impact on the accuracy of financial information will also
continue to be issued in the Company’s main regions following the restructuring of operating entities.
Specific procedures apply to the process of preparing financial information for release. They include:
• New financial reporting and consolidation procedures, consistent with IFRS and used to prepare the Group’s
financial statements. The new procedures simplify the preparation of financial reports and ensure that they are
dependable and homogeneous;
• A formal process of reporting and analyzing other information contained in the Group Registration Document.
The heads of finance of the legal entities and the Group Chief Financial Officer are in charge of these procedures.
(5) Assessment of the internal control of processes that have an impact on the accuracy of the
financial information
A management oversight entity exists for each region, responsible for monitoring operating performance (revenue,
expenses, and investments) and cash flow. Overall supervision is provided by a management control unit at the Group's
principal office.
The Group's financial planning process consists of:
• A strategic phase aimed at presenting the business plan
• A budgeting phase preceded by a definition of key objectives for the year;
• A re-budgeting phase for reviewing progress achieved during the first half of the year and adjusting projections
for the full year so as to ensure that budget guidelines are complied with;
• Periodic reassessments of revenue at monthly performance monitoring meetings for regional finance teams and
the Chief Executive Officers of entities.
The Group’s finance management conducts reviews of each operating entity, including technical performances and risk
procedures, action plans decided in connection with financial planning procedures and ad-hoc audits.
The independent auditors also report to the Group's senior management any shortfall in oversight that they may identify
during the course of their audit of the annual and interim financial statements.
Oversight is conducted at various management and line levels and includes a wide range of measures, including
authorizations, verifications and reconciliations, assessments of operating performance and verifications that due care is
exercised to protect assets and that the separation between functions is effective.
Internal control procedures implemented by the Group are designed to manage the subsidiaries' accounting and financial
information and to ensure that such accounting and financial information is exhaustive, accurate and fair.
Reporting procedure