Control Chatter
October 2021
News that Control Professionals need to know
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Test your Knowledge of Internal Control
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The Internal Control Institute has developed two mini assessments to test your knowledge. A CICS Common Body of Knowledge Mini Assessment that helps an individual determine their knowledge as it relates to organizational governance and control practices. Results point out areas of knowledge that may require additional training and experience. The assessments also provides a measurement to the individual's readiness for CICS certification.
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Start becoming an Internal Control professional today! |
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The ICI "Certification Series" of online courses |
The ICI "Certification Series" has been completely updated and is available online to everyone around the world! Course content prepares individuals to design and/or assess internal control and to assist management in installing internal control processes. In addition, the series prepares candidates for the Certified Internal Control Specialist (CICS) Examination. To review the course catalog click
To register for one or all of the online training programs click here:
Online course pricing has been reduced by over 70%
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Internal Control Chatter
Each month the staff of The Internal Control Institute reviews hundreds of articles related to Internal Control and Corporate Governance. Here are brief summaries of some of the top articles (along with links to the original article) that may be of interest to you.
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DOJ Announces Central America Anti-Corruption Tip Line
natlawreview.com
Wednesday, October 27, 2021
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On Oct. 15, 2021, the Department of Justice (DOJ) announced the creation of a tip line to help assist its Anticorruption Task Force fight corruption in Central America, specifically in the Northern Triangle countries of El Salvador, Guatemala, and Honduras. The Anticorruption Task Force was established earlier in 2021 with the goal of combatting corruption, human smuggling, and trafficking in the Northern Triangle and Mexico. Assistant Attorney General Kenneth A. Polite Jr. of the DOJ’s Criminal Division said, “corruption and impunity in the region undermine democracy, fuel irregular migration, and pose a threat to our national security because they sustain criminal organizations and transnational crime.” This DOJ announcement signals that anti-corruption efforts: (1) remain a priority for the Biden administration; (2) continue to focus on Central America; and (3) require the cooperation of multiple U.S. governmental agencies.
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UK SARs intelligence produces ‘appalling inaction’
fcpablog.com
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In a recent piece for the Financial Times, Tom Keatinge of the Royal United Services Institute’s Center for Financial Crime & Security Studies said that as regulatory expectations have shifted towards financial institutions in combating financial crime, UK banks are now expected to file Suspicious Activity Reports (SARs).
There is a misconception that the primary users of SARs are fraud and financial investigation units, given that the information is almost entirely of a fiscal nature. Nothing could be further from the truth.
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The Perils of Global Expansion: World’s Largest Ad Agency Sanctioned $19 Million for FCPA Violations, Insufficient Controls
jdsupra.com
October 25, 2021
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Global expansion without adequate controls is asking for trouble. That’s the lesson of a $19 million settlement between WPP, the world’s largest advertising agency, and the U.S. Securities and Exchange Commission (SEC) to resolve alleged violations of the Foreign Corrupt Practices Act (FCPA). According to an SEC order memorializing the settlement, WPP’s trouble began when it launched a rapid worldwide growth strategy, acquiring locally operated ad agencies around the world, including some in what the SEC calls “high-risk markets,” like China, Brazil, India, and Peru. The order emphasized that, in purchasing the local agencies, WPP allowed the agencies’ founders to remain in control, an approach that increased the risk that the agencies would continue to operate as they did before being purchased. Unbeknownst to WPP, some of the agencies had a practice of using vendors as intermediaries for improper payments, including bribery of government officials.
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Internal Control Weaknesses Combined with an Antiquated System Allow for Massive $3.8 Billion in Unemployment Fraud and Overpayments
einnews.com
October 28, 2021
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Columbus – Auditor of State Keith Faber’s Office released an audit of the Ohio Department of Job and Family Services (ODJFS) focused on fraud in Ohio’s unemployment system. Auditors noted changes to the federal requirements and a lack of controls led to vulnerabilities in the system allowing for over $475 million to be paid to criminals while another $3.3 billion in overpayments were made. This public interest audit was launched after ODJFS initially failed to disclose the risk and magnitude of ongoing fraud within the unemployment system. This increased risk and lack of controls resulted in the inability to obtain reasonable assurance about the accuracy and completeness of reported amounts within the State’s June 30, 2020 financial statements and led to the Auditor of State’s office (AOS) to issuing a modified state opinion in regard to Ohio’s financial outlook.
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Ethics - the foundation for a better world
cityam.com
21 October 2021
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This week has been a special one for us at ACCA. Wednesday was Global Ethics Day – an important occasion in the calendar that we celebrate annually as it aligns with our values. It’s a day where businesses and individuals can reflect and explore the meaning of ethics and their impact on life and society. It’s also a time where we can come together and focus on the most critical ethical challenges of these times – how to drive climate change action, make responsible corporate decisions, fight corruption, stand up to social injustices, create good government policy, and navigate the continuing impacts of the pandemic.
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How to detect, prevent, and protect your business against fraud
businessinsider.com
Oct 22, 2021
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Already hard-hit by the pandemic, a fraud-related loss is something few small businesses can afford. But it's an ever-looming threat for small businesses, with organizations of under 100 people accounting for 28% of all fraud cases at a median loss of $200,000.
What makes it worse is that fraud within small-to-medium businesses (SMBs) more often than not comes from your tight-knit employees. To avoid a world of hurt, you need to know how fraud could happen in your business and how to detect and prevent it.
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Whistleblowing Intentions for Internal Auditors
Why Psychological Safety Is Critically Important
cpajournal.com
October 2021
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Financial fraud represents a serious threat to financial markets, and it has long been noted that whistleblowing can be an important deterrent to fraud. Because of their positions within corporations, internal auditors are uniquely positioned to blow the whistle. For whistleblowing to have a maximal beneficial impact, on an organization and society at large, it is critical that internal auditors perceive a high level of “psychological safety” within a company. Potential whistleblowers must therefore believe that they will be heard and not fear retaliation. Financial accounting fraud in the capital markets represents a grave threat to the public interest. The 2020 Report to the Nations from the Association of Certified Fraud Examiners (ACFE, http://www.acfe.com/report-to-the-nations/2020/) estimates that global losses owing to fraud exceed $4.5 trillion annually.
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Credit Suisse Resolves Fraudulent Mozambique Loan Case in $547 Million Coordinated Global Resolution
Credit Suisse Securities (Europe) Limited Pleads Guilty to Wire Fraud Conspiracy
Department of Justice
U.S. Attorney’s Office
Eastern District of New York
justice.gov
NEWS RELEASE
October 19, 2021
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Credit Suisse Group AG, a global financial institution headquartered in Switzerland, and Credit Suisse Securities (Europe) Limited (CSSEL), its subsidiary in the United Kingdom (collectively, Credit Suisse), each admitted to conspiring to commit wire fraud by defrauding U.S. and international investors in an $850 million loan to finance a tuna fishing project in Mozambique. Credit Suisse has been assessed with more than $547 million in penalties, fines and disgorgement as part of coordinated resolutions with criminal and civil authorities in the United States and the United Kingdom. After taking account of crediting by the department of the other resolutions, Credit Suisse will pay approximately $475 million, as well as restitution to victims in an amount to be determined by the Court.
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HELP US IMPROVE INTERNAL CONTROL SYSTEMS WORLDWIDE:
The Internal Control Institute™ (ICI) improves organizational Internal Control worldwide by providing training, products and services and individual Professional Certifications
recognized internationally. The Institute's Board of Advisors has determined it would like to further expand into areas where it is not directly represented. ICI provides world-class
programs and its intellectual property to affiliates free of charge and shares all program
revenue with them. If your organization is interested in partnering with ICI to earn revenue while you contribute to the development of the internal control profession worldwide please contact Dr. Michael Pregmon, Jr., Chief Operations Officer, by email at mpregmon@internalcontrolinstitute.org or by phone at 727-538-4113 in the USA.
Below is a list of WorldWide Affiliates currently serving the profession. If your area is not represented please consider partnering with ICI
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2021 Certification Training Program & Exams
ICI and affiliates around the world have a busy training program scheduled for 2021. For more details on the CICS Training programs on offer visit the Events page on our website by clicking on the link below.
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ICI World Wide Affiliates
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Contact: Mr Aminur Rahman
Email: info@aaa-associate.com
Tel: +88 01749 400600
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Contact: Soulémane BABA DAMAGUI
Email: sbabadamagui@gmail.com
Tel: +0022997492600
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Contact: Mr Humphrey Chawafambira
Email: humphrey@internalcontrolinstitute.co.bw
Tel: +267 75618647
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Contact: Mr Eduardo Person Pardini
Email: eduardo@crossoverbrazil.com
Tel: +55 11 2599 8360
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Contact: Mr Eric Kamegne
Email: eric.kamegne@ipeonline.net
Tel: +237 658 292 978
Our first CICS session in April is online only
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Contact: Mr Qiu Jianting
Email: cert@neikong.com
Tel: 400-098-1119 or 010 68004176
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Contact: Mr. Yves Dupont
Email: info@icib.org
Tel: 0032 2 305 35 25
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Contact: Mr Summit Goyal
Email: info@bncglobal.in
Tel: +91 9810 575 613
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Contact: Mr Nereo Guzman Mendoza
Email: nguzman@buinesssolutionvalley.com
Tel: +52 811 181 3514
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Contact: Mr Belal Abdul Jabbar
Email: b.ajabbar@osooltc.com
Tel: +962 6 5927171
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Contact: Mr Sanjeev Gathani
Email: sanjeev@bbg-apac.com
Tel: +65 9655 4633
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Contact: Mr Joel Aluko
Email: tunjialuko5@yahoo.com
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Contact: Mr Muhammad Farooq Hammodi
Email: nardac_k@yahoo.com
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Contact: Mr Cosmin Serbanescu
Email: contact@incir.ro
Tel: +40 752 525 525
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Singapore, Malaysia, Indonesia & Taiwan China |
Contact: Mr Bob Seetoh
Email: bobseetoh@theglobalgrc.com
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Contact: Ms Sedie Jane Masite
Email: sediem52@gmail.com or info@ciagol.com
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Contact: Ms Nadia Yaich
Email: nadia.yaich@bfc.com.tn
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Contact: Ms Ilknur Tunc
Email: ilknur.tunc@iciturkey.org
Tel: +90 312 442 50 15
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Contact: Mr Jesus Salazar Ras
Email: salazarras1970@gmail.com
Tel: +58 426 737 8096 or + 58 416 291 3788
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Contact: Mr Nguyen Thanh Tung
Email: info@fmit.vn
Tel: 848 3803 5020
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Contact: Dr Proctor Nyemba
Email: admin@internalcontrolinstitute.co.zw
Tel: +263 4 443124
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Control Quotes:
People who think they know everything are a great annoyance to those of us who do.
Isaac Asimov
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The Internal Control Institute™ (ICI) is a worldwide organization devoted exclusively to internal control and corporate governance. The Institute is dedicated to the development of world-class educational programs and best practice guidelines on internal control and corporate governance, based on the Sarbanes-Oxley Act and the COSO internal control framework.
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