Mazars survey on internal controls :
Firms are only half prepared for the new requirements introduced by the Loi de Sécurité Financière.

According to a survey by Mazars, 82% of firms have not implemented any formal plans for compliance with the LSF (Loi de Sécurité Financière), but 77% believe the new requirements will help them to improve their relations with their shareholders.

These are the results of Mazars's survey of the biggest French limited companies in terms of turnover (60% listed, 40% unlisted) in the industrial and services sectors.

Firms said they were fairly aware of the concept of day-to-day internal controls (67%), but were in full agreement with the legislator's aims. Most believe that the new requirements provide a good opportunity to improve their risk management. The new framework prescribed by the LSF will therefore have the advantage of raising awareness of the concept of internal controls among all company staff, which is a very positive contribution in itself.

The real challenges raised by the implementation of the LSF will be played out in 2004. The stakes are high, given the end goal of the law: to implement proper risk management procedures within companies.

Serge Castillon, Thierry de Bailliencourt and Olivier Lenel will present the full results of the survey on February 13th, covering all aspects of the subject.

Mazars is a global Audit and Expertise organisation, with 5,300 employees worldwide and turnover of 475 million euros.

La Défense, February 2004, 9th