Something to Consider March 2018 3
As with many things, Internal Control over Financial Reporting is about quality not quantity. The focus on benchmarks of how few controls peer companies are using is a flawed approach to creating an effective controls environment, as there is no one size fits all.
Instead, the starting point should be a risk review and assessment. Which controls are necessary to address the company’s key risks? A risk assessment should also be proactive – not simply an ad-hoc response to key stakeholder concerns.
World-class organizations are utilizing innovative tools and techniques for performing and monitoring the risk assessment, such as data analytics and visualization tools. Innovative activities that can also alter the organization’s risk landscape include next-gen controls, such as continuous monitoring controls and robotics solutions.
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Our ‘Something To Consider’ snippets are framed as small, digestible, ‘dashes of insight’ around the pillars of what we define as “World Class Finance” – Process Optimization, Financial Control and Compliance, and Risk Assurance, all underpinned by technology enablement and integration.