Gary R Mc Guire CIA CPA Vice President

Gary R. Mc. Guire, CIA, CPA Vice President, Group Audit Services Alcatel Americas

Sarbanes-Oxley Act Section 404 Attestations

Internal Control Evaluation Group Audit Services report on Internal Controls & Procedures for Financial Reporting • Results of internal audits to date • Corrective actions taken by management • Management control self-assessments

Control Self-Assessment Surveys • Questionnaire developed by GAS – 60 COSO-based questions – Focused on financial reporting controls – 100 -point scale • Completed by 115 CFOs worldwide – Overall assessment – No supporting documentation required

CSA Results • Risk assessment & audit plan input • Testing of results - documentation & corrective actions – Opinion as to adequacy of CSA assertions – Substantive testing • Corrective action follow-up – Comprehensive & timely – Audit follow-up process

Agenda 1: 00 - 1: 10 Introduction & Overview of Annual Certification of Controls - Dave Richards 1: 10 - 1: 17 Methodology - Sheryl Hildebrand 1: 17 - 1: 24 Testing the Controls - Gary Mc. Guire 1: 24 - 1: 30 FDIC Certification Experience - Brian Szabo 1: 30 - 1: 45 External Auditor Attestation - Gary Stauffer 1: 45 - 1: 50 Break 1: 50 - 2: 25 Questions & Answers - Panel 2: 25 - 2: 30 Concluding Remarks - Dave Richards