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INFORMATION REGARDING THE COMPANY AND CORPORATE GOVERNANCE
130
LISI 2015 FINANCIAL REPORT
It reports to the Board of Directors, through the voice of its
Chairman or, in his absence thereof of any other member
designated for this purpose, its work at each meeting of the
Board of Directors.
18.16 Each committee rules as necessary on its other
operating procedures.
Each committee periodically ensures that its rules and operating
procedures allow it to assist the Board of Directors to deliberate
validly on the issues of its competence.
AUDIT COMMITTEE
ARTICLE 19 – DUTIES OF THE AUDIT COMMITTEE
19.1 The Audit Committee's primary duties include
reviewing the accounts and monitoring the issues
relating to the preparation and control of accounting
and financial information.
As such, it is responsible for:
■■
reviewing the draft separate and consolidated financial
statements, interim and annual, before submission to the
Board, including ensuring the relevance and consistency
of the accounting methods adopted to prepare the separate
and consolidated financial statements and examining any
difficulties encountered in the application of the accounting
policies;
■■
reviewing the financial documents issued by the Company
upon closing the annual and interim financial statements;
■■
assessing the reliability of the systems and procedures that
contribute to the preparation of financial statements and the
validity of decisions taken to handle significant transactions;
■■
monitoring the legal verification of the annual financial
statements and consolidated financial statements by the
auditors.
19.2 The Audit Committee also has the task of verifying
the effectiveness of the internal control and risk
management systems of the Company.
As such, it is responsible for:
■■
reviewing, with the heads of the Group's internal audit, the
organization of internal control, its functioning and the
procedures in place;
■■
examining, with the heads of the Group's internal audit:
–– the recommendations and objectives regarding internal
control,
–– the monitoring of interventions and actions by the officials
concerned within the Group;
■■
reviewing the results of the internal audit;
■■
checking that the procedures used by the internal audit that
contribute to the Company's financial statements accurately
reflect the reality of the Company and comply with its
accounting rules;
■■
reviewing the adequacy of the analytical and risk monitoring
procedures, ensuring the establishment of a process of
identification, quantification and prevention of major risks
arising from the Group's activities;
■■
examining the draft report of the Chairman of the Board of
Directorson internal control and riskmanagement procedures.
19.3 The Audit Committee is also responsible for checking
the effectiveness of the external control of the
Company.
As such, it is responsible for:
■■
issuing a recommendation on the auditors proposed for
appointment by the Shareholders’ General Meeting of the
Company;
■■
ensuring the independence of the Company's auditors;
■■
ensuring the adequacy of the remuneration of the auditors of
the Company for the actual accomplishment of their task, a
remuneration that should be sufficient so as not to undermine
their independence and objectivity;
■■
reviewing each year, with the auditors, their intervention
plans, the conclusions of their interventions, their
recommendations, and the way they are adhered to.
19.4 The Audit Committee regularly reports to the Board of
Directors on the performance of its duties and informs
it promptly of any difficulties encountered. These
reports are the subject of records provided to directors
at the relevant meetings of the Board of Directors.
ARTICLE 20 – MEANS AVAILABLE TO THE AUDIT COMMITTEE
20.1 In accordance with applicable laws and regulations
and the provisions of the bylaws and these rules, the
Audit Committee in general and each of its members
in particular may request copies of information they
find relevant, useful or necessary for the performance
of their tasks.