Good Corporate governance is a key factor in ensuring sound financial reporting and deterring misappropriations of capital and resources. Internal control and corporate governance go hand in hand. Many SME
have an ambitious goal of reaching a
reliable, continuous and integrated internal
control state. However, many SME’s are
still grappling to build a comprehensive
control process. In this paper, we present an
internal maturity framework that SME can use to benchmark and know how they can discourage frauds, improve compliance and adoption of standards.
Steps for setting up Internal Audit Function / Department in Small / Medium S...Pritesh Hirapara
How to set up internal audit department in India, Strengthen Internal Audit Department, Internal Audit Department for Small and Medium size company in India.
Steps for setting up Internal Audit Function / Department in Small / Medium S...Pritesh Hirapara
How to set up internal audit department in India, Strengthen Internal Audit Department, Internal Audit Department for Small and Medium size company in India.
Risk is the effect of uncertainty to on objectives. Risk can be negative or positive. When Risks are converted into opportunity, it create huge success.
POSITION OF INTERNAL AUDIT IN THE CORPORATE FRAMEWORKHaresh Lalwani
This presentation is my endeavor to bring to notice the new position that internal audit enjoys today in the corporate framework, expectations of the industry and emerging opportunities for the professionals.
Are You Ready? Implementing COSO's Updated Internal Controls FrameworkBlackLine
In this webinar, Bob Hirth, COSO Chair, will provide a brief overview of the new COSO Framework, followed by an interactive discussion around the December 15 deadline set by COSO and what this means for companies that have – and have not yet – implemented the updated framework.
In addition, participants will hear what is required under the new COSO Framework, and how those requirements relate to SEC rules for determining if the system of internal controls over financial reporting is “effective,” specifically for purposes of Sarbanes-Oxley reporting.
In this session we will discuss:
- Best practices and lessons learned working with clients as they transition to the new COSO Framework along with industry adoption rates
- How adoption of COSO 2013 provides an opportunity for companies to review and potentially improve internal controls
- How financial management software can streamline the mapping, documenting, and testing activities relating to COSO 2013
The depth and scope of examination, time of audit, processing methods, etc. In deciding on a specific technique, also need to take account of the objective of the audit action and the capacities limited by time or other factors.
Many auditors often forget the fundamentals of internal auditing. This webinar will focus on areas of internal auditing that every auditor should know. This includes understanding Audit’s role in the organization, IIA standards, internal control, and the key components of the audit process.
This webinar is for auditors who want to understand the key components of the audit process including characteristics of successful auditors.
The learning objectives include the following:
Learn about the IIA Professional Practices Framework
Learn about the framework of internal control as defined by the Committee of Sponsoring Organizations (COSO)
Learn about the basic elements of the audit process
Risk is the effect of uncertainty to on objectives. Risk can be negative or positive. When Risks are converted into opportunity, it create huge success.
POSITION OF INTERNAL AUDIT IN THE CORPORATE FRAMEWORKHaresh Lalwani
This presentation is my endeavor to bring to notice the new position that internal audit enjoys today in the corporate framework, expectations of the industry and emerging opportunities for the professionals.
Are You Ready? Implementing COSO's Updated Internal Controls FrameworkBlackLine
In this webinar, Bob Hirth, COSO Chair, will provide a brief overview of the new COSO Framework, followed by an interactive discussion around the December 15 deadline set by COSO and what this means for companies that have – and have not yet – implemented the updated framework.
In addition, participants will hear what is required under the new COSO Framework, and how those requirements relate to SEC rules for determining if the system of internal controls over financial reporting is “effective,” specifically for purposes of Sarbanes-Oxley reporting.
In this session we will discuss:
- Best practices and lessons learned working with clients as they transition to the new COSO Framework along with industry adoption rates
- How adoption of COSO 2013 provides an opportunity for companies to review and potentially improve internal controls
- How financial management software can streamline the mapping, documenting, and testing activities relating to COSO 2013
The depth and scope of examination, time of audit, processing methods, etc. In deciding on a specific technique, also need to take account of the objective of the audit action and the capacities limited by time or other factors.
Many auditors often forget the fundamentals of internal auditing. This webinar will focus on areas of internal auditing that every auditor should know. This includes understanding Audit’s role in the organization, IIA standards, internal control, and the key components of the audit process.
This webinar is for auditors who want to understand the key components of the audit process including characteristics of successful auditors.
The learning objectives include the following:
Learn about the IIA Professional Practices Framework
Learn about the framework of internal control as defined by the Committee of Sponsoring Organizations (COSO)
Learn about the basic elements of the audit process
Audit company - Audit for companies - PKC Management ConsultingPKCIndia2
An audit company is usually hired to perform the audit process. The auditor will work closely with the company's finance team to review financial statements, internal controls, and other relevant documents. we will provide an overview of how audits work, including the different stages and levels involved in the process. Whether you are a business owner or a professional looking to learn more about auditing practices, this article will serve as a useful guide. In conclusion, PKC Management Consulting is a reputable audit company that offers comprehensive and efficient auditing services for companies of all sizes. With their team of experienced auditors and consultants, they provide valuable insights and recommendations to improve business operations and financial management. Their commitment to integrity, professionalism, and customer satisfaction sets them apart in the industry. If you're looking for an audit partner that can help you achieve your business goals, PKC Management Consulting is the right choice. Contact them today to learn more about their services and how they can add value to your organization.
ISO 19001ISO 19001Student’s NameUniversity Name.docxpriestmanmable
ISO 19001
ISO 19001
Student’s Name
University Name
Date
Instructor’s Name
Abstract
ISO 19001 and its Scope
This is an international standard that gives guidelines necessary for management systems auditing. International Organization for Standardization is in charge and controls this mark of quality. The standard gives an organization four resources which includes;
· An elaborate explanation of all basics of management systems auditing.
· Updated information concerning the competence and evaluation of selected auditors.
· Guiding instructions on how to carry out internal and external audits.
· Guiding instructions on management of the available audit programs.
The main idea behind any management system auditing is to gather crucial evidence and this requires competent personnel. Three techniques are usually employed in getting this information. These are visual observations, physical interviews involving staff members and reading the available documents. The auditor used should be competent with the specific areas being audited and have basic training in it (Waddell, D 2005)
Internal audits
Internal audits are a function of an organization operating independently from other departments and usually reports to the appointed audit committee. They are charged with carrying out audits of the organization in all sections of the business as dictated by the annual audit plan. They are in charge of monitoring the financial flow in every department of the business. They focus on the keys issues facing the business and how well the management is working to have the problems solved. They are involved in decision making process regarding issues affecting the business that need to be improved for efficiency and increased returns. They keep the company updated at all times to make sure that finances are well utilized to maximize the returns. They generally help the company to keep going as they combine assurance and consulting services to ascertain that they achieve the very best. (Mock, TJ & Wright)
Internal auditors are professionals who are independent to the areas they carry out the audits. This is meant to reduce cases of fraud and be biasness. They must abide to a code of ethics, a core requirement for this career. They must be compliant with international standards and this increase and assures the quality of their output. They are put on mentoring and upgrading programs on regular basis to sharpen their skills and to keep them updated on upcoming issues and technology necessary for their practice.
External audits
External audits are external functions who work for an organization to carry out and confirm audits. They reside outside the governance of the business but they may at times be shareholders of the organization. Their objective is to add credibility of the financial reports earlier given by internal audits. Their coverage is mainly financial reports and other financial reporting risks. They have no responsibility in mon ...
Rewiring HR for WFH, Hybrid work & Future of workBrowne & Mohan
Humans working in tandem with automated robots on shopfloors is increasing. Covid 19 induced WFH is here to stay as an economic and resource strategy for many companies. Human resource (HR) departments must therefore rewire themselves to balance work between digital and human associates. HR systems will be driven by intelligence, own change management and design systems for boundary-spanning workflows, collegial support.
Studies indicate that 9 out of 10 businesses have shut down within 5 years after the death of the founder and only about 3 out of 10 survive in second generation. Most family business are designed to fail as they do not address successor planning and training, have poor risk management practices and suffer from interdependencies between the family, the business and ownership. In this paper, Browne and Mohan consultants share how successful family businesses have built resilience to stay relevant and stay resilient in challenging times.
How to transform a family business: insights from the trenches Browne & Mohan
Working with many family businesses across industries, we realize they face a high rate of failure because of their inability to distinguish between family and business issues and build structures and process that protect value across generations. In this paper, we share governance process and systems that are a must for family businesses to preserve and sustain economic and social values across multiple generations.
AI solutions are the most important component of the digital transformation of many companies. AI Startups are racing ahead to address the needs of industries. In this paper, we present the broad strategies AI startups can employ to be successful.
Government of India’s ambitious Skill India program created National Skill development council (NSDC) to create a powerful network of training ecosystem to address employment skills and support gainful entrepreneurship. Despite the best efforts of the government, partners and other agencies involved in the outcomes of Skill India program have fallen short of objectives. The problem of skilling India can’t be solved by increasing expenditure and bringing in more training partners alone. We present here the reasons for the shortfall and approaches to overcome each pain area.
In recent years, many companies are turning their back on “brand investment” and aggressively pursuing what is known as "no branding principles". In this paper, Browne and Mohan consultants recommend approaches to use "no branding" principles for their products and services
Heroes give people a character to aspire, root for and relate to in a campaign story line. Brands have realized ordinary people as hero's can be effective to promote many products/services.
Common man hero may not possess any heroic abilities or strengths but their stories as underdogs winning against many odds, and acting selflessly with a strong moral company inspires and connects with consumers across many segments. In this paper Browne and Mohan consultants share the principles underlying successful common hero branding campaigns.
Many CEO complain they do not see the value in marketing efforts. For them we suggest to use a simple and practical framework, PCCDIO, that has worked wonders for our clients,
Is lack of SEDEX/ WRAP/SA 8000 certification hurting your business?Browne & Mohan
As global trade has expanded, companies have realized a need to implement systems to eradicate human exploitation including bonded labor, safer working conditions and right wages. Several standards have been created to support institutionaization of safer, healthy and inclusive work environment. Standards like SMETA (by SEDEX-Supplier Ethical Data Exchange), SA8000 (by Social Accountability International), WRAP (by Worldwide Responsible Accredited Production), FLA Accreditation (by Fair labour Association), etc have been pushed by the demand side of various industries. In this paper, Browne & Mohan consultants present the advantages of social compliance, how companies must prepare themselves for these standards and how they must sustain their efforts.
Happy Juice principles: How to create a marketing organization that informs a...Browne & Mohan
Many companies spend lot of marketing without realizing the expected benefits. This happens because they simply lack a coherent approach. In this white paper, Browne & Mohan consultants share a proven empirical approach that makes sure your marketing efforts do perform.
Sales operations centre (SOC) is the heart of sales operations. Many companies do not realize the benefits of sales transformation because they under invest in SOC or do not plan & roll it out like a project. The result inconsistent sales reviews, inefficient controls and unrealized outcomes. In this white paper, Browne & Mohan consultants share the best practice approach to build a strong sales operations centre
Many companies attempt internal branding in an ad hoc and unstructured way. Most believe some great quotes, bright decors and greens thrown in makes for internal branding. In this white paper, Browne & Mohan consultants share an approach that can be used to roll out impact making internal branding exercise.
Rewiring marketing: a practice based approachBrowne & Mohan
Many marketing managers are not aware if they are leveraging marketing efforts correctly or getting the returns that they anticipated. Often people believe transforming marketing is all about creating some digital assets. Marketing transformation is not piece meal improvement. The primary purpose of a marketing transformation is to increase the ROI of marketing your company. In this white paper, Browne & Mohan consultants share a practice based approach to marketing transformation.
Influence marketing: dynamics of influencer-brand engagement Browne & Mohan
Influencer marketing is emerging as a strategic approach to inform and influence online consumers. In this paper, Browne & Mohan consultants share the life-stages evolution of influencer and brand engagement. Right from identification to nurturing and reinforcing their relationships, brands need to invest time and efforts to realize the returns from influencer marketing
Rewiring sales organization for growth and scaleBrowne & Mohan
With markets becoming volatile and uncertain, shortening of products and commoditization, sales function is facing huge challenges. Companies need to rewire their sales organization to provide it with enough flexibility, visibility, actionable intelligence and ownership for employees. In this Whitepaper, Browne & Mohan consultants share how to rewire sales organization to set the company for revenue growth and scaling up.
Aftermarket audit to Gain Competitive leadership Browne & Mohan
Industry experts opine that OEM’s and their dealers may be losing $9-15 Billion unqualified sales annually to competitors. Return after repair is a grouse which happens with the iconic brands at dealer level and OEM’s do not have complete visibility. OEM’s and dealers can bill billions of dollars more only if they knew how to constantly manage revenue leakages and manage cost of operations. In this paper, Browne & Mohan management consultants share aftermarket audit framework that can be used to assess current costs of service and operations and identify areas of improvement.
Aftermarket is an important source of revenue for many companies. However, many OEM's face not just revenue leakages, but also ineffective customer and dealer experiences. In this paper, Browne & Mohan consultants share an approach to conduct an aftermarket audit.
Sales casualty analysis: why sales numbers do not happen and what to do to ge...Browne & Mohan
Despite significant investment in resource and infrastructure, many companies suffer from long sales cycles, lack of funnel, targets missed by miles and very low closure rate. Reasons for poor sales numbers are common across industries. In this white paper, Browne & Mohan consultants detail the inhibitors of sales growth and how to address the same.
Governance mechanisms that work in a family businessBrowne & Mohan
Adoption of good corporate governance practices and professionalization help business continuity of family business. This paper presents both formal and informal mechanisms that Indian family businesses of various sizes deploy to improve corporate governance. Formal mechanisms include family assembly, family office, board of directors for each business and independent directors. Informal mechanisms include shareholders assembly, and family outings etc..
Performance measurement system for startups and scaling upBrowne & Mohan
what measures should startups and scaling up firms use to direct and align their multi-functional activities. In this paper, Browne & Mohan consultants present a comprehensive performance system that not only guides startups and scale ups, but bind several functions within the organization towards common objective.
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how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Internal controls maturity and SME corporate governanance
1. 86 The Management Accountant - October 2020 www.icmai.in
CORPORATE GOVERNANCE
Abstract
Good Corporate governance is a key factor
in ensuring sound financial reporting and
deterring misappropriations of capital and
resources. Internal control and corporate
governance go hand in hand. Many SME
have an ambitious goal of reaching a
reliable, continuous and integrated internal
control state. However, many SME’s are
still grappling to build a comprehensive
control process. In this paper, we present an
internal maturity framework that SME can
use to benchmark and know how they can
discourage frauds, improve compliance and
adoption of standards.
INTERNAL CONTROLS
MATURITY AND
SME CORPORATE
GOVERNANCE
Dr. TR Madan Mohan
Managing Partner
Browne and Mohan Management Consultants
Bangalore
Sharadha V
Junior Consultant (Strategy & Finance)
Browne and Mohan Management Consultants
Bangalore
Mukund Mohan K
Junior Consultant (Marketing)
Browne and Mohan Management Consultants
Bangalore
Introduction
N
umerous corporate scandals have brought in
more awareness and significant attention from
regulators, whistle-blowers and the public on
internal controls and corporate governance.
While corporate governance sets the standards and
recommends procedures; internal controls make sure those
procedures are being followed. The Financial reporting
review board (FRRB) of the Institute of the Chartered
Accounts of India (ICAI, 2018) cites lack of significant
disclosures in accounting policies covering revenue
recognition, borrowing costs, inventories, impairment of
assets, goodwill subsidies granted by the government. Many
companies were found to be inadequate in reporting gain
on outstanding derivative contracts being recognised in the
profit and loss which is against the principle of prudence
as given under accounting standard 1. The Institute of
Cost and Works Accountants of India (ICWAI, 2009) has
2. www.icmai.in October 2020 - The Management Accountant 87
CORPORATE GOVERNANCE
released a guidance note to help
organizations accomplish systematic
and objective approach to operations,
evaluation and monitoring of risk
management, reporting and control
practices. Misappropriation of Assets,
corruption, and financial statement
are common woes SME face due to
weak internal controls. Companies
with a focus on effective governance
have an ambitious goal of reaching a
credible, continuous risk assessment
and integrated audit process. For
many senior management and internal
control teams the goal is to attain a
repeatable, reliable and data-driven
process (Omalayeand Jacob, 2018).
Many companies are still grappling to
build a comprehensive audit process
and many of their existing activities
are in “rudimentary” stage (Sohand
Martinov-Bennie, 2011). We believe,
the use of a maturity model can provide
a clear direction to achieve a reliable
and evolved assessment and assurance
process. In this paper, we present an
internal maturity framework that SME
can use to benchmark and know how
they can discourage frauds, improve
compliance and adoption of standards.
Internal controls maturity Model
Broadly speaking there are three
types of controls namely preventive,
detective and corrective (IIA, 2015).
Preventive controls are mostly process
and role based that adopt a checker
and approve approach. Separation
of making purchases and approving
payments; receiving bills and
approving payments; and authorizing
returns and issuing refunds are
some good examples of preventive
controls. Detective controls are
internal controls designed to identify
problems that already exist. Audits
including statutory audits can be seen
as form of a detective control. Timely
reconciliation and verification of bank
accounts, review and verification
of refunds/payments, reconciliation
of petty cash accounts, audits of
payroll disbursements, conducting
physical inventory checks etc are
some examples of detective controls.
Corrective controls are internal
controls that are taken to mend any
impairment or bring back resources
and capabilities to their earlier state
that was due to an unapproved activity.
Maturity of internal controls
depends on formal mechanisms used
forpreventive,detectiveandcorrective
actions, but also the responsiveness
of the management to the outcomes
of assessment and quality of follow
up actions. Based on COSO’s ERM
framework (COSO, 2017), we
identify nine fundamental parameters
of internal controls. Methodology is
what is core to auditing. It reflects
the approach to assessment, quality
assurance and improvement program
based on accounting standards. Data
capture refers to the quality and
depth of data collected for auditing
and improvement. Documentation
refers to information storage and
retrieval for audit trial and follow
ups. Planning refers to defining the
operational, financial and strategic
aspects of audit process and outcomes
including scope, time and quality of
resources. People refers to the extent
to which the audit staff are trained
as appropriate, are aware of their
responsibilities related to assurance
and endowed with enough expertise
and experience to conduct the required
activities. System refers to extent of
standardized information flows and
reliability of captured document for
assessment process. Risk refers to the
depth of risk assessments (operational
and strategic) and mitigation plans.
Review covers the depth of financial
and non-financial areas the quality
assurance and assessment will address.
Ownership and responsibility indicate
whether audit is silo function with
little control and ownership across
the company or a process led activity
owned by process leaders and owners.
Table 1 presents the elements that
make up key areas of internal audit
and their maturity and phases at each
level.
Table 1 Internal controls Maturity stages
Level 1 Level 2 Level 3 Level 4 Level 5
Methodology
Limited to
mandatory guidance,
informal audit
engagement plan,
largely top-down,
focus on meeting
management
and regulatory
requirements, annual
audit plan with basic
reports
Mandated and
recommended
guidance, limited
annual audit plan
focusing on reports,
and monitoring of
recommendation.
Focus on mandated,
recommended and
supplementary
guidance, plan with
periodic reporting,
risk reporting and
monitoring of
recommendation.
All factors in level
three along with
implementation
guidance, reports,
risk assessment, and
detailed review of
recommendations
All factors in level
four along with
code of ethics,
standards, extensive
audit engagement
plans, top-down
and bottom-
down integration,
extensive reporting,
risk assessment
and continuous
monitoring of
recommendations
Data Capture
Descriptive data,
longitudinal data
not captured for
analysis; lack of
indications
Descriptive data
along with some
analytical data
for trend analysis,
extensive lag of
indicators
All of level
two along with
somewhat predictive
data and some lead
indicators
All of level three
along with some
prescriptive data
and reasonable lead
indicators
Extensive
prescriptive data and
predictive analysis
along with extensive
lead indicators
3. 88 The Management Accountant - October 2020 www.icmai.in
CORPORATE GOVERNANCE
At level 1, the firm’s reviews of
activities are informal and disordered.
Therefore, success of the reviews
and audits depends on the expertise
and ability of the people conducting
the reviews & audits. It is highly
likely that the audit and checks are
done by the same person manually,
with a lack of planning and is highly
prone to errors and manipulation.
At level 2 is where basic standards
of procedures are adhered to, data is
captured and used for trend analysis;
plans and basic risk assessments have
been recognized; At this level, reviews
and the audit undertakings are much
more controlled than at level, mainly
focusing on financial and compliance
transactions with limited follow up
reporting. At level 3 of maturity,
audit activities are automated and
Documentation
Ad hoc, not clearly
documented
Manual documents,
not monitored
regularly
Well documented
but not monitored
Good documentation
and monitoring of
reports
Extensively
documented along
with detailed
monitoring
procedure
Planning
No planning
involved.
Plans are based on
standard operating
procedures for
an audit and
are executed by
mid-senior level
members with
financial knowledge.
Plans are made
recognising cost
and revenue drivers,
supported with data
captured through
tools.
Increase in depth and
extent of planning
where along with
revenue drivers,
industry benchmarks
and possible
leakages are sought
out before delving
into the audit. Plans
are over seen by the
top management
before being
Plans supports
corporate
Strategies terms of
customer growth,
profits and business
fulfilment.
Overseen, revised
and monitored by
top management.
People
Limited to Audit
staff with traditional
auditing skills
and no industry
knowledge
Audit staff with
limited business
knowledge and
resources
Reasonable mix of
traditional auditing
and business
expertise
Experienced auditors
with reasonable
experience of
business and
industry expertise
Great mix of
traditional
auditing skills, and
industry expertise
complemented by
overall business
knowledge, and
critical thinking
System
Only Manual
systems
Use of basic
technology and
system to capture
record and store
data.
Reasonable systems
to data capture and
sharing, with some
real time auditing
Real time systems
for data capture and
auditing
Leading technology
(data mining,
analytics, etc) and
real-time auditing
accessible from
anywhere
Risk management
Limited risk
assessment, no
formal identification,
mitigation plans
Focused risk
assessment, one at
a time approach,
limited plans
Broader risk
assessment (both
micro and macro
levels), formal
identification and
mitigation methods
Comprehensive,
holistic risk
assessment (both
micro and macro
levels)
Extensive, and
Comprehensive,
holistic risk
assessment (both
micro and macro
levels), extensive
risk management
Review
Focus is mainly on
financial transactions
and ad hoc review
process
Focus is mainly
on financial
and compliance
transactions, it is
reasonably formal,
with limited follow
up reporting
Focus is mainly on
financial, compliance
and operational
transactions with
formal and periodic
follow up reporting
Focus is mainly
on financial,
compliance,
operational
transactions and IT
systems with formal
and periodic follow
up reporting
Extensive review
of financial,
compliance,
operational
transactions and
IT systems, trailed
by a formal and
continuous follow up
reporting
Ownership and
responsibility
Limited to a
department, few
resources, mostly
post-hoc analysis,
prone to execution
risks
Broadly defined
responsibilities
at business level,
and ownership at
Business leader level
All of level two
along with minor
proactive responses
at field level
Well defined
Ownership and
responsibility at
levels of process
owners, process
leader, management
and board
Integration at all
levels right from
process owner,
leader, management
and board, along
with detailed risk
controls
4. www.icmai.in October 2020 - The Management Accountant 89
CORPORATE GOVERNANCE
completely standardized, plans
are made recognising financial,
operational and business risks. At
level 4 the focus of audits shifts to
proactive risk identification to ensure
quality and maturity. Data captured
consist of good lead indicators and
are analysed. This is followed by
measuring performance and along with
efficient documentation and consistent
monitoring. Level 5 is an optimised
state with evolved code of ethics,
standards, extensive audit engagement
plans, extensive reporting, risk
assessment and continuous monitoring
of recommendations.
Conclusion
The maturity model detailed here
guide companies from traditional
siloed process towards more mature
continuous data-driven reliable
organizational wide process. The
first step in transformation of internal
controls involves conducting a
comprehensive “as-is” audit. This
helps to identify the current processes,
gaps and areas to improve quality
assurance and improvements. Please
note, not every SME requires the
same level of maturity in their internal
controls. SME must choose the “to-
be” maturity stage based on the needs
and goals of the company, nature of its
business, regulatory requirements and
regimen of audit teams. In the second
stage, define standardized process,
create and configure appropriate
process changes based on the proposed
internal controls framework. People
capability gaps need to be addressed
through extensive training and on the
job learning. Focus on process flows
and technology adoption. In the 3rd
stage, deploy company-wide process
and system changes with common
objectives across different units and
measures. The end goal would be to
continuously assess and refine at all
levels. The proposed internal control
maturity matrix serves as comparison
tools to help SME identify the desired
maturity level that is right for it.
Moreover, the maturity matrix serves
as a mechanism to measure progress
along the way as this is a continuous
journey.
References
1. Committee of Sponsoring
Organizations of the Treadway
Commission (COSO), 2017,
Enterprise Risk Management
Integrating with Strategy and
Performance.
2. OmalayeKE, O. and Jacob
RB, J., 2018. The Role
of Internal Auditing In
Enhancing Good Corporate
Governance Practice in an
Organization. International
Journal of Accounting
Research, 06(01), 1-8.
3. Soh, D. and Martinov-Bennie,
N., 2011. The internal audit
function. Managerial Auditing
Journal, 26(7), 605-622.
4. The Institute of Cost and
Works Accountants of India
(ICWAI), 2009. Guidance note
on Internal Audit.
5. The Institute of Chartered
Accountants of India (ICAI),
2018, Study on Compliance
of Financial Reporting
Requirements, Volume III.
6. The Institute of Internal
Auditors (IIA) Research
Foundation, 2015, Combined
Assurance: One Language,
One Voice, One View.
mmohan@browneandmohan.com
vsharadha@browneandmohan.com
mukundk@browneandmohan.com
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