top banner

Control Chatter                                                   February 2019
News that Control Professionals Need to Know

 Quick Links
 *All New* Internal Control online courses
ici logo
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 here: ICI Course Catalog
To register for one or all of the online training programs click here:  
Online course pricing has been reduced by over 70%, so get started today! 
****Limited Time Only****
Test your Knowledge of Internal Control
*** Take the  Internal Control Knowledge Mini-Assessment ***
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
In This Issue
Importance of Risk Management
ICI Announcements
Good corporate governance creates long-term shareholder value
Once hailed as unhackable, blockchains are now getting hacked
COSO offers guidance on internal controls for health providers
SEC Charges Four Companies with Failing to Fix Internal Control Problems
How Deutsche Bank Drifted Into Its Whirlpool of Woes
Controllers feel pressure to cook the books
Wells Fargo Details Internal Audit Reforms
A Thief Among Us?
Importance of Risk Management
By Michael Pregmon, Jr., Ph.D., CICP
COO and Managing Director
Dr. Michael Pregmon, Jr.
COO and Managing Director 
The effectiveness of an organization's internal control is due in large measure to its ability to manage risk in its operation. Certainly, risk cannot be managed with 100% certainty . In fact, an organization likely cannot afford to do so. Effective risk management recognizes the risk exposure and installs internal controls accordingly. Risks that are less likely to occur are assigned a lower probability.
The activity of risk management as a control function is an important one to "stay on top of." For instance, recent updates in the COSO Framework necessitated a change to the Common Body of Knowledge (CBOK). This then led to a change in its risk management course. Consequently, the online course has been updated. However, this will further initiate changes to applicable questions in the certification examination.
Risk management is such an important activity that internal control professionals should ensure this is a part of their continuing education process.   Keeping abreast of this important area can also be a source for earning additional CPE credits toward recertification in most programs such as the CPA, CICS, CICP, CIA and related certifications.

The updated COSO Framework document addresses the evolution of enterprise risk management. It emphasizes the need for organizations to improve their approach to managing risk in order to meet the demands of the evolving business environment.

The updated document focuses on the importance of considering risk in a strategy setting process as well as in directing performance. Enterprise Risk Management-Integrating Strategy and Performance as a COSO update clarifies the importance of enterprise risk management in strategic planning and introducing it throughout the organization in all departments and functions.

So, keeping risk management an improvement area and at the forefront of your continuing educational development will help you to keep abreast of changes in your profession.
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 727-538-4113   in the USA. 

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 :

Rio de Janeiro  - April 1 to 5, 2019
Brasília - April 22 to 26, 2019
Belo Horizonte - May 13 to 17, 2019
Porto Alegre - June 3 to 7, 2019
Fortaleza - June 24 to 28, 2019
Curitiba - July 15 to 19, 2019

For more details on planned training please check on the website below, or send a message to Mr. Eduardo Person Pardini

Training Plans:

Hangzhou - March 14 - 17, 2019
Beijing - March 20 -23, 2019
Guangzhou - March 28 - 31, 2019
                          Xi'an, Shaanxi Province - April 25 - 28, 2019
                         Shanghai - May 23 - 26, 2019
                         Beijing - June 19 - 23, 2019

Individuals or companies interested in internal control training and Certification should contact:  
Mr. Qiu Jianting
Room 1039, Block A, Jinmao Building, No. 18, Xizhimenwai Street,
Xicheng District, Beijing, China
Zip Code: 100044
Mobile phone: 13810588109


Training Plans :

Luxembourg - February 28, 2019 (in French)

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 :
Phone: +91 9810575613

Myanmar and Cambodia:
ICI is proud to announce it has entered into an agreement with Better Business Governance - APAC PTE LTD (BBG) as its 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)
Singapore 229594
For more information on upcoming activities in this area please contact the following:
Antonio Salas Hernandez CICP,  Email: 
Joaquin Prendes Herrera, Email: 

Middle East:

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:

Dubai, UAE February 24 - 28, 2019
Tripoli, Libya - February 24 - 28, 2019
Doha, Qatar - March 3 - 7, 2019
Amman, Jordan - March 10 - 18, 2019
Ramallah, Palestine - March 10 - 14, 2019
Kuwait City, Kuwait - March 17 - 21, 2019
Muscat, Oman - April 7 - 11, 2019
Tunis, Tunisia - April 7 - 11, 2019
Cairo, Egypt - June 30 - 4 July, 2019

Interested applicants in that region should contact Osool for scheduling for future programs.  For additional information on scheduled ICI Certification and program sessions, please contact:
Lina Salameh
Assistant General Manager
O SOOL 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:
Mr.  Joel Aluko


For more information on activities in Pakistan individuals or companies should contact : Muhammad Farooq Hammodi

Singapore, Malaysia, Indonesia and Taiwan:
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:
General enquiries for all 4 markets -
Singapore - Mr. Bob Seetoh -
MalaysiaMr. Melvin
IndonesiaMr. Barry Dingga -
Taiwan - Ms. Mickey Tai -


CICS Certification Exam Preparation Training to be held in Ankara 
from 9 - 10 March 2019.

For detailed information on scheduled ICI Certification and program sessions, please contact ICI Turkey  below:

Ms. Ilknur Tunc,  VP -
Dr. Bertan Kaya -
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: 

11 April 2019
27 June 2019
12 September 2019
19 December 2019

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
Office: 848 3803 5020 - 848 3512 9371 - 848 3512 7652

For more information on activities being planned please contact:
Mr. Proctor Nyemba at:

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.
Good corporate governance creates long-term shareholder value
The experience over the past 12-18 months shows that investor engagement has reached a new high for Indian companies.
by Hetal Dalal
Feb 20, 2019  
Discerning investors intuitively understand the value of good corporate governance. It results in an optimal balance in the agenda of management, promoters, and other stakeholders in everyday operations, and in taking material decisions. More importantly, good corporate governance generates trust, and predictability of behaviour (or, at least, no serious surprises), which provides significant comfort to investors. But governance standards are difficult to measure. Most investors know which companies are well-governed, or at the very least, they are sure about the companies that are not well-governed. Several investors can even rank (broadly) companies or groups in terms of their corporate governance standards.
Connectivity Once hailed as unhackable, blockchains are now getting hacked
More and more security holes are appearing in cryptocurrency and smart contract platforms, and some are fundamental to the way they were built.
February 19, 2019
E arly last month, the security team at Coinbase noticed something strange going on in Ethereum Classic, one of the cryptocurrencies people can buy and sell using Coinbase's popular exchange platform. Its  blockchain, the history of all its transactions , was under attack.  An attacker had somehow gained control of more than half of the network's computing power and was using it to rewrite the transaction history. That made it possible to spend the same cryptocurrency more than once-known as "double spends." The attacker was spotted pulling this off  to the tune of $1.1 million
COSO offers guidance on internal controls for health providers
February 20 2019
The Committee of Sponsoring Organizations of the Treadway Commission, or COSO, is collaborating with Top 10 Firm Crowe LLP and CommonSpirit Health to issue new guidance for health care providers on internal controls amid heightened regulatory scrutiny of the health care sector.  The publication, " 2013 COSO Integrated Framework: An Implementation Guide for the Healthcare Provider Industry ," expands on COSO's widely used internal control framework, but within the context of the health industry. COSO pointed out that health care organizations can have issues with system access and integrity, clinical documentation, coding and billing, and those could lead to potential noncompliance with federal and state regulations, on top of costly mistakes.
SEC Charges Four Companies with Failing to Fix Internal Control Problems
The Securities and Exchange Commission has settled charges against four public companies for failing to maintain internal control over financial reporting (ICFR) for several annual reporting periods. Two of the charged companies also failed to complete the required evaluation of the effectiveness of ICFR for two consecutive annual reporting periods. The SEC has been  warning companies for not fixing internal control failures. According to the SEC's orders, year after year, the four companies-Grupo Simec, Lifeway Foods, Digital Turbine, and CytoDyn-disclosed material weaknesses in ICFR involving certain high-risk areas of their financial statement presentation. As discussed in the SEC orders, each of the four companies took months, or years, to remediate their material weaknesses after being contacted by the SEC staff. One of the companies is still in the process of remediating its material weaknesses.
How Deutsche Bank Drifted Into Its Whirlpool of Woes
By Steven Arons
February 1, 2019
At this point,  Deutsche Bank AG's biggest problem may simply be how many problems it has, how long they've gone on and how they've fueled one another. Four years of sliding revenue has spawned four failed  turnaround plans and the steady departure of senior executives. That's alongside an equally steady stream of lawsuits and investigations, topped by a raid on the bank's headquarters in November. Its next obstacle may be the solution the German government seems to have in mind -- merging it with its troubled cross-town rival, Commerzbank AG. 1. What's gone wrong? Chief Financial Officer James von Moltke has said the bank is suffering from "a vicious circle of declining revenues, sticky expenses, lowered ratings and rising funding costs." It's repeatedly tried to reverse the slide, without success. Problems include outdated technology, a  talent drain and heavy fines -- $17 billion in the last decade -- for misconduct.
Controllers feel pressure to cook the books
February 12, 2019
Nearly two-thirds of corporate controllers feel pressure to "cook the books," according to a new international survey, and many of them feel that misrepresenting their company's performance is just part of their job.
The  survey, by FloQast, a provider of close management software for corporate accounting departments, found that 64 percent of controllers feel pressure to "cook the books," with 10 percent of them stating it's just part of their job.
Wells Fargo Details Internal Audit Reforms, Names New Audit Chief
February 8, 2019 
As part of its continued efforts to put a series of massive scandals behind it, Wells Fargo recently outlined some changes it has made to how the internal audit function is structured, including adopting a more centralized system of internal audit. The troubled bank also named a new chief audit executive.
Last week, Wells Fargo issued a government-mandated  update on its effortsto reform its governance, risk management, and compliance systems. "The report addresses actions Wells Fargo has taken - and continues to take - to improve its culture, make things right for customers who were harmed, revamp its organizational structure, and strengthen risk management and controls," the bank said in a statement.
A Thief Among Us?
February 13, 2019
Most law partnerships begin with a sense of shared aspirations, enthusiasm and trust. The founding partners and those subsequently added presumably maintain a fiduciary commitment to conduct consistent with the welfare of the other partners, as well as clients. The fact is that this is often not the case.
The recent conclusion of a case involving an Atlanta law firm and its managing partner provides a painful but poignant example of the extent to which trust can be violated.
Editor's note: The author concludes " A quality set of internal controls will significantly decrease the odds of your firm facing its own Nathan Hardwick-like moment" We couldn't agree more! 
Control Quotes
You control your future, your destiny. What you think about comes about. By recording your dreams and goals on paper, you set in motion the process of becoming the person you most want to be. Put your future in good hands - your own. 
Mark Victor Hansen
Help Keep Everyone Informed...
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 .
ici logo 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.