Internal control review acquires increasing importance in the light of present economic slowdown. Continuous assessments are used to monitor and review internal controls across a range of functions to determine whether the Board of Directors’ anticipated effectiveness for the internal control system is being achieved. The evaluation makes it easier to find internal control weaknesses so that corrective action can be taken.
As per the Executive Bylaws issued by the Capital Market Authority “CMA” Module 15 – Corporate Governance, Article 6-9 which states “An independent audit firm shall be engaged to evaluate and review the internal control systems and prepare a report in this regard (Internal Control Report “ICR”).
What is internal control?
Internal control is described as “a process effected by an entity’s Board of Directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories”:
- Operational effectiveness and efficiency;
- Financial reporting accuracy; and
- Adherence to relevant legal and regulatory requirements.
What are the benefits of Internal Control Review?
- Enhance adherence to established rules and processes,
- Operational effectiveness and efficiency,
- Financial reporting accuracy, and compliance with relevant laws and regulations, and
- Identifying and stopping faults and irregularities in a timely manner.
The Capital Markets Authority requested that an independent audit firm be assigned to evaluate and review the internal audit systems and prepare a report in this regard (Internal Control Report), which shall be submitted to the Authority per annum.
We Allinial Global-Sulaiman Al Bassam and Partners as a service provider pleased to conduct an Internal Control Review for your organization, along with providing an opinion on whether the accounting and internal control systems were established and maintained in accordance with CMA legislation and regulations, highlighting weaknesses in the internal control structure and providing recommendations to mitigate risk or strengthen areas of weakness.
