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: [email protected] or by phone at 727-538-4113in the USA.
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
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.
Online course pricing has been reduced by over 70%
The Business Planning Process
By Michael Pregmon, Jr., Ph.D., CICP
Dr. Michael Pregmon, Jr. COO and Managing Director
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.
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 ANNOUNCEMENTS
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:
Botswana:
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:
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:
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:
Doha, Qatar - 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:
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 company in 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:
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, Level 5, 126 Nguyen Thi Minh Khai Street, Ward 6, District 3, HCMC, Viet Nam
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
engadget.com
October 24, 2019
A former Apple lawyer who oversaw the company's insider trading policy has been indicted on insider trading charges. Prosecutors allege 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 the indictment, 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
By Jena McGregor
washingtonpost.com
October 24, 2019
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 Lyft, Pinterest and Peloton continue to go public with such arrangements.Mark Zuckerberg holds nearly 60 percent of the voting power at Facebook with his super-voting shares. At Snap, the common shares offered as part of its IPO had no voting rights at all; its 2018 annual report 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.
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
en.yna.co.kr
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.
Accounting Giants Launch Tool For Assessing Blockchain Risk
By Darryn Pollock
forbes.com
October 22, 2019
The growth and adoption of blockchain technology in the enterprise space is getting up to full steam at the moment. It is also being aided by the likes of the Accounting Blockchain Coalition
(ABC), an alliance dedicated to educating businesses and organizations on accounting matters relevant to digital assets and blockchain.This coalition, which adds another institutional and trusted edge for those looking to enter the blockchain and digital asset space, is in some powerful company hands. The members include BDO USA; BPM USA; ConsenSys; Crowe LLP; Michigan State University Eli Broad College of Business; Microsoft; RSM and Vertex, Inc.Both BDO and BPM are massive accounting firms in the US, with the latter rated in the top 50 accounting firms and the former boasting 60 offices and more than 400 independent Alliance firm locations nationwide. The aim of this coalition is to provide guidance on best practices and serve as a knowledge-sharing platform as organizations address the sweeping changes and resulting opportunities created by the implementation of blockchain.
CMA publishes second state of corporate governance report
BY:Claire Wanja
https://www.kbc.co.ke
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
economictimes.indiatimes.com
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."
Bohdi Sanders
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If you see a news story concerning internal control or corporate governance that you feel is important for other professionals to know please send it to us .
ABOUT ICI
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.
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:
