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DOCUMENTS SPECIFIC TO THE SHAREHOLDERS’ GENERAL MEETING
8
Provisions for industrial risks
Risk identified
The Group is exposed to the environmental and industrial risks
inherent to each of its Aerospace, Automotive and Medical activities
carried out worldwide within complex and constantly changing
regulatory frameworks. In this context, the Group then adopts a
prudent approach to protect itself against the above risks.
As specified in Notes 2.2.13 and 2.5.4 to the consolidated financial
statements, the Group exercised its judgment on a case-by-case
basis when assessing the risks incurred, and recognized a provision
whenever it expected a probable outflow of resources to settle the
obligation.
We have deemed this issue to be a key audit matter considering the
amounts involved and the level of judgment required for determining
these provisions against the backdrop of multiple and constantly
changing regulatory frameworks.
How we tackled it
As part of our audit of the consolidated financial statements, our work
consisted in particular in:
■■
examining the procedures implemented by the Group to identify and
record all the risks;
■■
reviewing the risk assessment carried out by the Group, the related
documentation and, where applicable, written consultations of
external consultants;
■■
assessing themain risks identified and examining the assumptions
used by Management to estimate the amount of these provisions;
■■
examining the disclosure on these risks contained in the Notes to
the consolidated financial statements.
Verification of information on the Group provided in themanagement
report
We have also, in accordance with the professional standards
applicable in France, specifically verified, as required by law, the
information on the Group, provided in the management report of the
Board of Directors.
We have no comments tomake on their sincerity and consistency with
the consolidated financial statements.
Disclosures arising from other legal and regulatory obligations
Auditors appointment
We were appointed as Auditors of LISI by your Shareholders’ General
Meeting in 1993 for Exco et Associés and of April 27, 2011 for Ernst &
Young et Autres.
At December 31, 2017, Exco et Associés was in the 25
th
year of its
engagement and Ernst & Young et Autres in its 7
th
year.
Responsibilities of management and of those charged with
corporate governance in relation to the consolidated financial
statements
It is management’s responsibility to draw up the consolidated
financial statements giving a true and fair view in accordance with the
International Financial Reporting Standards (IFRS), as adopted in the
European Union, and to put in place the internal control that it deems
necessary for drawing up the consolidated financial statements free
of material misstatements, whether due to fraud or error.
When drawing up the consolidated financial statements, it is the
responsibility of management to assess the company’s capacity to
continue its operations, to present in these financial statements,
if applicable, the necessary information on the going concern
assumption and to apply the going concern principle, unless it is
planned to wind up the company or discontinue its operation.
It is the responsibility of the Audit Committee to monitor the process
for preparation of the financial information and the effectiveness of
internal control and risk management systems, and, if applicable,
the internal audit systems, as regards the procedures relating to the
preparation and processing of accounting and financial information.
The consolidated financial statements have been approved by the
Board of Directors.
Responsibilities of Auditors relating to the audit of the consolidated
financial statements
Audit objective and approach
It is our responsibility to prepare a report on the consolidated financial
statements. Our objective is to obtain a reasonable assurance that
the consolidated financial statements, taken as a whole, are free
of material misstatements. Reasonable assurance is a high level of
assurance, without however guaranteeing that an audit conducted in
accordance with professional standards systematically ensures that
any material misstatement is detected. Misstatements may be due to
frauds or errors and are considered as material where it is reasonable
to expect that they can, taken separately or together, influence the
economic decisions that users of the financial statements take based
on them.
As set out in Article L.823-10-1 of the French Commercial Code,
our task of certifying the financial statements does not consist in
guaranteeing the viability or the quality of the management of your
company.
LISI 2017 FINANCIAL REPORT