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The Group Insurance and Hotel Risk Prevention Department

The Group Insurance Department ensures that Group risks are properly financed, primarily through coverage by appropriate insurance policies, and helps to identify these risks and to deploy prevention procedures. In particular, in its hotel risk prevention role, it defines, promotes and coordinates personal safety procedures in the Group’s hotels, and conducts inspections to verify their application by the people concerned.

Corporate Internal Audit

Corporate Internal Audit reports directly to the Corporate Secretary and has a dotted-line reporting relationship with the Group Internal Control Committee. As the cornerstone of the internal control system, it is responsible for helping to develop internal control tools and standards, and for performing Internal Audits based on the annual audit program approved by the Group Internal Control Committee.

Corporate Internal Audit coordinates its audit plans with the Statutory Auditors’ work plans. It is also responsible for coordinating the activities of the local Internal Audit Departments within the Divisions.

At December 31, 2012, Corporate Internal Audit had a staff of nine auditors. In addition, Group Information Systems Internal Audit, which reports to Corporate Internal Audit, had a team of three auditors at that date.

The local Internal Audit Departments in the Divisions

The local Internal Audit Departments set up in the main Divisions report to their Division’s Chief Financial Officer and have a dotted-line reporting relationship with Corporate Internal Audit. The sole exception to this rule is the local Internal Audit Department for the Europe, Middle East and Africa region, which reports directly to Corporate Internal Audit.

These local departments have direct ties with Corporate Internal Audit, thereby ensuring that they comply with the fundamental principles of conduct and independence and follow the standards required of the Internal Audit profession, as well as the methods recommended by the Group. These ties also guarantee that the local Internal Audit Departments are given adequate resources to fulfill their objectives.

At end-2012 the local Internal Audit Departments in the Divisions had a total of 26 auditors.

The accounting and financial information system

The Group’s accounting and financial information system is designed to ensure the security, reliability, availability and traceability of information.

It is based on an interfaced reporting and consolidation system that covers substantially all of the Group’s operations with the aim of providing consistent accounting data at company and Group level.

Corporate governance

REPORT OF THE CHAIRMAN OF THE BOARD OF DIRECTORS

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A specifically designed user manual has been prepared and
issued to the employees concerned, in order to guarantee that
the systems are correctly used and that the information obtained
is appropriate and relevant.

The Group has also set up processes to ensure the security of
the accounting and financial information system, as well as the
integrity of the data involved. These include regular back-ups
and programmed controls that trigger warnings in the event of
incorrect data entries.

The accounting and financial information system is regularly
updated in line with the Group’s specific needs.

Internal reporting

The Group ensures that relevant information is communicated
in a timely manner to the appropriate persons so that they can
exercise their duties in accordance with the Group’s standards.
To this end, a set of procedures defining best practices and
reporting processes has been circulated internally.

Corporate values and principles

The Group’s internal control system supports the corporate
values expressed by the Board of Directors and Executive
Management and communicated to all employees. Accor has
prepared rules of conduct and integrity relating to employee
behavior and relations with customers, shareholders, business
partners and competitors, and also has an Ethics Charter, which
is widely circulated within the Group.

The Internal Audit Charter aims to provide a Group-level crossfunctional view of Internal Audit resources and methodologies,
as well as the methods used to communicate the results of
Internal Audits. To this end, it defines the framework for Internal
Audit activities within the Group, based on the professional
standards issued by IFACI and other bodies, which set down
strict Codes of Conduct for Internal Auditors. The Charter also
formally describes the role, membership and procedural rules
of the Group Internal Control Committee. Lastly, it describes
the procedure to be followed by Corporate Internal Audit to
coordinate the activities of the local Internal Audit Departments.

The Internal Audit Charter has been signed by the Group’s
Chairman and Chief Executive Officer; the President and Chief
Operating Officer, Responsible for Worldwide Operations;
the Global Chief Financial Officer, also responsible for Group
Information Systems; the Corporate Secretary; the Senior
Vice-President, Internal Audit; and the members of the Control
Committee, whose structure and roles are described in
section 3.2.2.5 below.