Control Chatter October 2019
News that Control Professionals Need to Know
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:
or by phone at
in the USA.
Test your Knowledge of Internal Control
The Internal Control Institute has developed a CICS Common Body of Knowledge Mini-Assessment that helps an individual determine their knowledge as it relates to governance and control practices. Results point out areas of knowledge that may require additional training and experience. The assessment also provides a measurement to the individual's readiness for CICS certification. The assessment measures core knowledge in eight critical areas including: Internal Control - Principles, Terms and Concepts, Internal Control Environment, Risk Management, Assessing Application Controls, Business System Control Assessment, Risk Assessment, Internal Control Measurement and Reporting, and Governance Practices
Internal Control online courses
Start becoming an Internal Control professional today!
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 register for one or all of the online training programs click here:
Online course pricing has been reduced by over 70%
The Business Planning Process
By Michael Pregmon, Jr., Ph.D., CICP
In previous editions we discussed the four major involvements of effective managers and we identified these with the acronym as the "POLC" process. We stated that the "P" in this acronym represented the need to properly plan activities. We also related that managers typically devote far less time to this activity than they should - oftentimes only half the amount of time and effort.
|Dr. Michael Pregmon, Jr.
COO and Managing Director
In the next several editions of the Control Chatter Newsletter, we will broadly cover the components of a "planning" system. This process can be used not only for internal control activities but also business planning in general. When each of these elements are properly considered, you will have a well-documented and effective plan for a specific activity or even a complete business venture.
The plan requires a detailed consideration of seven sections, that when completed will provide the necessary "roadmap" for successful activity implementation. These component questions are:
Where are we?
Where do we want to go?
How are we going to get there?
Who is responsible?
How much will it cost?
When will it be done?
Completing the feedback loop
Planning systems and programs are dynamic. In this respect, they truly never end. As we complete the first cycle or iteration, we review what we've accomplished, revise the plan and move forward to a new cycle. Also, it must be recognized that few plans are executed perfectly. And, adjustments must often be made thereafter.
Planning is often broken into three phases. These are short term, intermediate term, and long term. Companies usually determine the timeframes for these time periods. But, the most common time periods for these are:
Short term - one year or one budget period
Intermediate term - Two to five years
Long term - Six years and beyond
A planning system often includes all three phases. However, it must be recognized that the longer the planning horizon, the more the plan accuracy diminishes. Also, one of the major frustrations with long term planning, in particular, is that it never ends. So, once started it's a continuous "ride".
ICI Affiliate News
The Internal Control Institute is conducting certification training in a classroom format for the internationally recognized CICS (Certified Internal Control Specialist) certification in internal control. Information on these programs regarding dates and schedules can be found on the Events tab on our Website or directed to the affiliate named below:
ICI has entered into an agreement with Internal Control Institute of Botswana (ICI Botswana":) as its representative for Products, Services and Internal Control Certifications (CICS/CICP) in this territory. ICI Botswana will be responsible for all development activities in this area, including professional training and Certification. Individuals or companies interested in internal control training or Certification should contact:
Contact: Humphrey Chawafambira
Training Plans :
- November 25 to 29, 2019
For more details on planned training please on the website below, or send a message to Mr. Eduardo Person Pardini. Email:
CICS training programs were held in Hangzhou (September 5-8, 52 persons) , Beijing
(September 18-21, 31 persons), Congratulations to all those who took part in the Certification programs.
The next scheduled training course will take place in Beijing, China from 20 to 23 November 2019.
The next Hangzhou CICS training course has been postponed to January, 2020.
Individuals or companies interested in inter
nal control training and Certification should contact:
Mr. Qiu Jianting
Room 1039, Block A, Jinmao Building, No. 18,
Xicheng District, Beijing, China
Zip Code: 100044
Training Plans :
CICS Training in Dutch in Brussels, Belgium will take place in seven sessions over the period 4 October 2019 to 10 January 2020.
For more information on scheduled training and exams please contact Mr.Yves Dupont of ICI Belgium at:
For more information on upcoming activities in this area please contact Mr. Summit Goyal of
ICI India at :
Better Business Governance - APAC PTE LTD (BBG) has become a representative for Products, Services and Internal Control Certifications (CICS/CICP) in Myanmar and Cambodia.
Better Business Governance will be responsible for all development activities, including professional training and Certification. For more information on upcoming activities in this area please contact:
Better Business Governance
Mr. Sanjeev Gathani
1 Claymore Drive
#08-14, Orchard Towers (Rear Block)
For more information on upcoming activities in this area please contact the following:
The CICS exam is now being
provided in Arabic.
Osool Training and Consulting has courses and testing available in Jordan, Libya, Muscat, Sudan, Qatar, the United Arab Emirates, Kuwait and Palestine.
Training Plan 2019
Certified Internal Control Specialist (CICS) Certification Preparation Programs are scheduled as follows:
- November 17 to 21, 2019
Dubai, UAE - December 15 to 19, 2019
Interested applicants in the region should contact Osool for scheduling for future programs.
For additional information on scheduled ICI Certification and program sessions, please contact:
Assistant General Manager
for Training & Consulting
Mob Oman: +968 95 98 98 20
Mob Jordan: +962 7 99589666
Tel: +962 6 5927171 Ext. 107
Fax: +962 6 5927172
Leadway Consulting conducts CICS training sessions and examinations in Nigeria.
For more information on upcoming activities in Nigeria please contact:
For more information on activities in Pakistan individuals or companies should contact : Muhammad Farooq Hammodi
- CICS Training Course to be held in Bucharest from 28 to 30 October 2019
CICS Examination to be held in Bucharest on 6 December 2019
For more information on activities in Romania contact : Cosmin Serbanescu at the National Institute for Internal Control in Romania.
+ 40 752 525 525
Singapore, Malaysia, Indonesia and Taiwan China:
ICI has entered into an agreement with GRC Consultancy Pte Ltd. (ICI Singapore, Malaysia, Indonesia and Taiwan) as its representative for Products, Services and Internal Control Certifications (CICS/CICP) in those territories.
Individuals or companies interested in internal control training or Certification should contact:
ICI has entered into an agreement with
Business and Financial Consulting
the Republic of Tunisia
(hereinafter referred to as "ICI BFC"
as its representative for Products, Services and Internal Control Certifications (CICS/CICP) in the Republic of Tunisia
. ICI BFC will be responsible for all development activities in this area, including professional training and Certification. Individuals or companies interested in internal control training or Certification should contact:
CICS training to a corporate group of 20 people in the banking sector in October
For detailed information on scheduled ICI Certification and program sessions, please contact ICI Turkey
GOP Mahallesi, İran Caddesi, Karum İs Merkezi
No:21, D Blok, 4. Kat, D:398-399
+90 (312) 4425015 T
+90 (533) 4474444 D
CICS examinations to be held in Vietnam:
19 December 2019
21 March 2020
For more information on upcoming activities in Vietnam please contact: NGUYEN THANH TUNG (MBA. M.Eng, PhD.) Director, FMIT Institute of Financial Management & Information Technology,
, 126 Nguyen Thi Minh Khai Street, Ward 6, District 3, HCMC, Viet Nam
Office: 848 3803 5020 - 848 3512 9371 - 848 3512 7652
For more information on activities being planned please contact:
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.
Apple's former insider trading watchdog indicted for... insider trading
By Kris Holt
October 24, 2019
lawyer who oversaw the company's insider trading policy
has been indicted
Gene Levoff traded shares based on his knowledge of Apple's financial results before they were made public.
Levoff, who worked at Apple from 2008 to 2018, was charged with six counts of wire fraud and six counts of securities fraud. According to
Levioff realized a profit of around $227,000 on some trades and avoided losses of about $377,000 on others. The trades in question allegedly took place between 2011 and 2016.
As well as being a senior director of corporate law at Apple, a position he held from 2013 to 2018, the indictment notes Levoff was a co-chairman of Apple's disclosure committee. That group reviews Apple's earnings reports and Securities and Exchange Commission filings before they're released.
Adam Neumann's billion-dollar exit package from WeWork is a lesson in giving founders too much control
Adam Neumann's eye-popping deal with SoftBank to exit WeWork is being described by corporate governance experts as a prime example of the issues with dual-class shares, where founders or early investors receive "high-voting shares" with voting rights disproportionate to their economic interest.
The news of Neumann's package, which would let him walk away with as much as $1.2 billion, as well as a loan to repay a credit line, comes amid increasing pushback from investors as start-up unicorns such as
continue to go public with such arrangements.
holds nearly 60 percent of the voting power
at Facebook with his
shares. At Snap, the common shares offered as part of its IPO had no voting rights at all; its 2018
said its co-founders controlled 97 percent of the voting power. Neumann's shares at one point granted him 20 votes per share; that figure dropped to
10 votes per share
before he stepped down as CEO.
The 7 Habits of the Most Productive Entrepreneurs
By David Finkel
Here are the 7 habits the world's most successful entrepreneurs have cultivated that allow them to consistently achieve, earn, and enjoy more.
1.Build blocks of time in which to create value.
2. Reserve the first hour of the day for your highest value activities, not email.
3. Give your company the gift of your best attention.
4. Do fewer things, but make sure they are the things that really matter.
5. Create your "Stop Doing" list.
6. Put a hard stop at the close of your business day.
7. Celebrate progress, not pinnacle moments.
Cyber threats: Risks grow, but readiness drops
October 11, 2019
Although organisations are increasingly tuned in to the dangers posed by cybersecurity risks, they have more work to do to combat the threats, according to a new survey.
The portion of more than 1,500 business leaders who ranked cyber threats among the top five risks to their company grew from 62% in 2017 to 79% in 2019, according to the 2019 Global Cyber Risk Perception Survey undertaken jointly by Microsoft and insurance broker and risk adviser Marsh.Twenty-two per cent of survey respondents ranked cyber threats as the number one risk to their company in 2019, up from just 6% two years earlier.
But business leaders' confidence in their organisations' ability to respond to these threats slipped
Financial regulator to order hedge funds to bolster internal control process
October 21, 2019
SEOUL, Oct. 21 (Yonhap) -- Financial authorities plan to order hedge funds to strengthen their internal control process amid a liquidity crisis at Lime Asset Management Co., the head of the financial regulator said Monday.
Lime Asset, which manages assets worth about US$4 billion, said last week that it was forced to freeze withdrawals from funds worth 846.6 billion won ($721.5 million) because it failed to liquidate assets to meet redemption requests by clients.
Financial Services Commission (FSC) Chairman Eun Sung-soo told lawmakers that authorities will encourage hedge funds to bolster their internal control systems in the wake of the liquidity crisis at Lime.
Eun said the FSC will take steps to prevent the crisis at Lime from spreading to other hedge funds.
CMA publishes second state of corporate governance report
The Capital Markets Authority (CMA) has published the second State of Corporate Governance Report based on an assessment of 53 issuers of securities to the public in the 2018/19 financial year.The report is aimed at raising visibility of the state of corporate governance of issuers of securities to the public in Kenya in order to empower investors and respective boards to encourage continuous improvement in practices.
The report follows the evaluation of the second set of regulatory reports submitted in accordance with the Code of Corporate Governance Practices for Issuers of Securities to the Public, 2015 (the Code), which became effective in March 2017.The Code sets out the principles and specific recommendations on the structures and processes which issuers should adopt in making good corporate governance an integral part of their business dealings and culture.
Questions raised over qualifying exam for independent directors
By Pavan Burugula
October 24, 2019
Mumbai: Non-executive directors are puzzled by the central government's decision to introduce a qualifying exam for independent members of company boards. The Indian Institute of Corporate Affairs (IICA), Haryana, is to hold the exam starting in December and 60% is the qualifying mark. Further, all listed companies have been asked to disclose each independent director's test result in their annual reports. The proposal has raised concern that this could provide fodder for activist shareholders.
"When you react, you let other control you. When you respond, you are in control."
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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. Visit us on the web at the Internal Control Institute
|Control Chatter is a monthly news summary of the top stories concerning internal control and corporate governance. Control Chatter is prepared by the staff of Internal Control Institute for the benefit of their members and associates. Please consider it for your personal use or pass it on to associates who may have an interest in one or more of the topics by clicking on the Forward email button below.