The setup of an internal control system is connected with the process management. Controls take place along the value chain in different manner, e.g. quality controls in the production area. A specific method is the internal control system (ICS, SOX) based on COSO framework, that already exists for many years and plays an important role within the annual audit. Based on financial scandals and resulting legal aspects, e.g. Sarbanes-Oxley-Act (SOX), German "Bilanzrechtsmodernisierungsgesetz" (BilMoG) the importance to have an internal control system increased. Some companies only document control activities in the financial area, while others document control activities for all business relevant processes. Comparable to a continuous improvement of business processes, a regular verification and update of control activities is recommended.
Project topics – examples:
- Creation, use and further development of a company-specific risk catalogue
- Alignment of the internal control system (ICS) to organizational changes
- Definition and implementation of new internal controls/update of existing internal controls
- Verification of the quality of documented control activities
- Monitoring of the execution of internal controls
Are you currently working on these topics? Do you need any support? Please contact Dr. Monika Bauch – Management Consulting. I will be pleased to work with you!