Control Chatter
February 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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Record Level of FCPA Enforcement in 2020 Highlights Key Risk Areas
By Richard A. Walawender and Howard O. Weissman
natlawreview.com
Monday, February 22, 2021
The year 2020 witnessed a record level of $2.78 billion in corporate fines and penalties from enforcement of the Foreign Corrupt Practices Act (FCPA) by the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC). It also witnessed continued close cooperation by the DOJ and SEC with enforcement authorities in other countries, resulting in billions of additional dollars in fines and penalties by foreign enforcement authorities. These trends, which will likely continue and even expand in 2021, highlight the urgent need for companies to identify the key risk areas of FCPA exposure they face in their international operations, and to maintain compliance programs that work in practice, not just on paper.
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The big debate: control compliance vs. risk management
cio.com
FEB 22, 2021
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When it comes to managing and mitigating technology risk, IT teams have traditionally relied on operational, control-compliance approaches focused on information security. The rest of the business, meanwhile, has probably adopted broader, business-focused risk management frameworks. This disconnect can sometimes inhibit IT leaders’ ability to effectively articulate technology risk to business stakeholders, which can impact investment decisions. For effectively managing IT risk, there’s room for both approaches, because there are benefits found in each method.
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Audit Oversight and Effectiveness
Understanding the Past and Looking toward the Future
cpajournal.com
February 2021
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Almost 20 years ago, a crisis in confidence in financial reporting led Congress to pass the Sarbanes-Oxley Act of 2002 (SOX). SOX marked the beginning of a new era for the auditing profession in the United States. The act ended self-regulation and ushered in independent oversight under a new organization, the Public Company Accounting Oversight Board (PCAOB). The law also expanded the scope of auditors’ responsibilities by requiring auditors to opine on the effectiveness of internal control over financial reporting.
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Financial reporting warning signs: take action or else
newenglandinhouse.com
February 22, 2021
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The U.S. Securities and Exchange Commission’s recent settlement with Belden Inc. raises numerous lessons for legal counsel who represent public registrants, including the importance of adequately addressing internal control issues raised by acquisition due diligence procedures, assessing the pros and cons inherent in bill and hold transactions, and ensuring “know your customer” programs are in place. The Belden settlement is reported in the SEC’s Accounting and Auditing Enforcement Release No. 4196. Below is an abbreviated background of the facts reported in the release, along with considerations and recommendations for legal counsel advising companies that may deal with similar issues.
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Audit reforms must not descend into ‘checklist’ exercise
Government must be wary of following Sarbanes-Oxley pitfalls
accountancyage.com
February 19, 2021
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Upcoming proposals to reform audit and corporate governance in the UK need to be watchful of turning into a box ticking exercise, according to Franki Hackett, head of audit and ethics at audit tech vendor Engine B. On February 4, The Financial Times reported that the long-awaited reforms to the audit sector are due to be published imminently in the form of a white paper. According to the broadsheet, there are set to be over 200 recommendations, including making directors “personally responsible for the accuracy of their company’s financial statements”.
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Wells Fargo's (WFC) Proposal for Overhaul Wins Approval of Fed
By Zacks Equity Research
nasdaq.com
FEB 18, 2021
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In a major breakthrough in its efforts to get rid of the past misconducts, Wells Fargo & Company WFC has been able to satisfy the Federal Reserve with its proposal for overhauling risk management and governance. The news was reported by Bloomberg. The move is a step forward for the bank to get its asset growth limit removed. Notably, it had submitted the proposal, including the compliance and operational risk management program of improvement, in September 2020. Among the several other limitations and probes that Wells Fargo is currently facing, the one that has been a priority is the asset growth restrictions placed by the Federal Reserve in early 2018. In December, the company had said that it still has to work on improving its control systems in order to have the cap lifted.
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Cisco discloses investigation of alleged payments to foreign officials
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Cisco Systems, Inc. said in an SEC filing Tuesday that it is investigating allegations that former employees in China ran a “self-enrichment scheme” that may also involve payments to employees of state-owned enterprises. The San Jose, California-based networking giant said it has “voluntarily disclosed this investigation” to the DOJ and SEC. “We take such allegations very seriously and we are providing results of our investigation to the DOJ and SEC,” the company said. Cisco said the outcome of the investigation is “currently not determinable.” It said the investigation isn’t expected to have a material adverse effect on its consolidated financial position, results of operations, or cash flows. Cisco has 75,000 employees worldwide. Revenues last year were about $52 billion. The company said the alleged self-enrichment scheme involved “now-former employees in China.”
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Risk and compliance: A 2021 comeback strategy
securitymagazine.com
February 18, 2021
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The pandemic tested corporations in 2020 like never before, and the fallout of the pandemic has sparked a host of additionally destructive risks: cybersecurity, supply chain, health and safety, financial fraud, and regulatory compliance. If the experiences of 2020 taught us anything, it’s that risk in the modern world cannot be understood or sufficiently mitigated with a siloed approach. Individual threats, such as regulatory risk and IT security, converge. Lacking a high-level view, it’s difficult to see the web of cause and effect – making it more difficult to anticipate, prepare, or mitigate the biggest risks. 2020 may be over, but the challenges remain in 2021. Compliance and risk management will need a shared umbrella of information and communication to tackle the complex, integrated risks of today’s landscape.
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HELP US IMPROVE INTERNAL CONTROL SYSTEMS WORLDWIDE
PARTNERS WANTED:
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 programme scheduled for 2021. For more details on the CICS Training programmes 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: 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 51 3533 8566
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Contact: Mr Eric Kamegne
Email: eric.kamegne@ipeonline.net
Tel: +237 658 292 978
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Contact: Mr Qiu Jianting
Email: cert@neikong.com
Tel: 400-098-1119 or 010 68004176
The next CICS on-line training course, the Hangzhou Partner has planned to start the course on March, 8, and hold the CICS exam on April 11, 2021. During this period, CCSIT will provide 4 (8-hour)live broadcast courses for on-line students.
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Contact: Mr Yves Dupont
Email: info@icib.org
Tel: 0032 2 305 35 25
Scheduled Events
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Contact: Mr Summit Goyal
Email: info@bncglobal.in
Tel: +91 9810 575 613
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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 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:
Be who you are and say what you feel, because those who mind don't matter and those who matter don't mind.
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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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