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%, 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
Dr. Michael Pregmon, Jr. COO and Managing Director
We briefly mentioned this topic in previous newsletters. However, it is a topic worthy of more detailed treatment. For a certification program such as that in internal control, it is an important document.
"CBOK" is an abbreviation and/or acronym for "Common Body of Knowledge." A CBOK defines and describes a profession. In fact, it is considered the genesis of a professional activity. Typically, a CBOK is composed of domains or skill categories that together cover the profession. The CBOK publication may also describe certain aspects of the profession such as the applicable certification program and examination information to gain certification.
A professional Common Body of Knowledge is normally developed by subject matter experts working in a specific activity. These are individuals who have been working in the defined area for a period of time. And, they likely have developed many processes, procedures and techniques for the activity. Usually, this comprises a group of experienced individuals rather than a single author. This group together agrees on the profession's components. Ironically, these individuals typically have been working in the activity before it is recognized as a profession. For example, it took almost two years, in the late 1990's, before the Internal Control CBOK and certification program was finalized.
In most cases, a CBOK publication does not change very often. This depends upon the certification program. But, there will be updates over time. And, although there may be updates, changes and improvements in technology, business operations and process activities, these may not necessitate changes in the CBOK. Here again, depending upon the certification program, not all changes in technical operations and activities prompt changes in the CBOK document.
The Internal Control CBOK is the source document for all certification examination questions. Changes in the CBOK content most often triggers changes in exam questions. However, this is not always the case. Training courses and associated training materials enhance the learning and understanding of the CBOK contents. Nevertheless, certification exam questions are not derived from training courses.
The Internal Control Common Body of Knowledge is composed of eight subject domains or skill categories. As indicated above, these subject areas are the focal point of the profession. Refer to
www.internalcontrol.institute in the products section for a more detail description of the skill areas.
Internal control applies to all functions of an organization or business beyond accounting / internal audit to include marketing, manufacturing, logistics, procurement, information technology, human resources, etc. Each of these functional areas must install control processes for increased efficiency and effectiveness.
ICI ANNOUNCEMENTS
PARTNERS WANTED:
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
727-538-4113in 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.
Brazil:
Training Plans :
Curitiba July 16-20, 2018
Belem August 6-10
Belo Horizonte August 27-31, 2018
For more details on planned training please check on the website below, or send a message to Mr. Eduardo Person Pardini.
International Association for Internal Control The headquarters of ICI China has moved to a new location. The new address is as follows. Individuals or companies interested in internal control training and Certification should contact:
Mr. Qiu Jianting
CCSIT
Room 1039, Block A, Jinmao Building, No. 18, Xizhimenwai Street,
ICIB president Yves Dupont presented his association and their development in the area of Control Self-Assessment at the FERMA Forum (European Risk Managers association) in Monte-Carlo. He hereby highlighted the complementarity between risk management and internal control, insisting on the role of first line operational management. For more information: http://www.icib.org/other-events.ws
For more information on scheduled training and exams please contact Mr.Yves Dupont of ICI Belgium at:
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:
ICI Mexico is working
to translate training course materials into Spanish and also to develop the web page for ICI Mexico in Spanish. 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 2018
Certified Internal Control Specialist (CICS) Khartoum-Sudan July 16-24
Certified Internal Control Specialist (CICS) Amman-Jordan October 7-16
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:
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:
Opening 6 CICS training courses in Ankara and Istanbul.
Providing full scope of ICI services in Turkey, as well as a specific corporate internal control accreditation system with ICI Headquarters. The government institutions, banks and corporations will be accredited jointly by ICI and ICI Turkey based on a certain rating/assessment program.
Targeting banking and public institutions with the main objective being to introduce ICI and Professional Certifications to these 2 industries. More than 2000 professionals will be made aware of and familiar with ICI and ICI' s Certifications.
For information on scheduled ICI Certification and program sessions, please contact ICI Turkey at it's new address or the individual contacts below:
CICS-CICP® Preparation Training is planned for
HCM CITY starting June 16th. Saturday, Sunday Morning: 08:30 - 11:30 Afternoon: 13:30 - 14:30 4 days June 16,17,23 and 24.
The plan for the CICS examination in Vietnam:
06/28/2018
09/2018
12/2018
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
Internal Control Institute Zimbabwe has been conducting in house Certified Internal Control Specialist (CICS) training. One company has given three groups to be trained in house for a total of 35 individuals. CICS Exam is scheduled for June 28th, 2018
For more information on activities being planned please contact:
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.
Rethinking the purpose of the corporation
BY EDWARD J. WAITZER
corporateknights.com
It's time to flip the switch from shareholder to stakeholder capitalism
In 1976 two economists (Jensen and Meckling) introduced the concept of agency costs - the costs of aligning the incentives of different corporate actors. This characterization of the mission of corporate law has led to a 40 plus year search for an organizational Holy Grail - how to align the interests of shareholders and managers (and of controlling and minority shareholders) through a series of techniques, including regulatory standards, independent directors, take-overs and activist shareholders. The advent of the efficient market hypothesis reinforced the focus on market pricing as the arbiter of corporate performance (and of short-term shareholder value as the purpose of the corporation).
We have learned, painfully, that neither of these ways of thinking about governance issues is sufficient. By the turn of the century, Jensen had become an advocate for "enlightened stakeholder theory" - a focus on maximizing total long-term market value.
Sixteen years after the Enron scandal, auditing firms are again in the news for their failure to detect accounting shenanigans - at U.K. contractor Carillion, at South African retailer Steinhoff, at Colonial BancGroup in the U.S. This has revived a recurring question: Are the firms' other businesses, most notably consulting, clouding their judgment? In the U.K., lawmakers have gone so far as to suggest breaking up the big four auditing firms - Deloitte, Ernst & Young, KPMG and PwC. This may ultimately prove necessary, but existing rules should first be given a chance to work. Auditors play a crucial role in the economy, one that comes with unique privileges and responsibilities. The law guarantees demand for their services by requiring public companies to produce audited financial statements. Those statements, in turn, provide valuable information to investors and to anyone interested in the condition of the business. This public service function makes quality and independence particularly important. The big auditing firms, though, also do other things - such as strategy consulting, information technology and tax advice. In this work, they answer to the company's management, not to investors or the public. These other tasks might enhance auditors' understanding of their clients' businesses, but they can also create conflicts - particularly when they account for a large share of the auditing firms' billings. The dangers became abundantly clear during the U.S. accounting scandals of the late 1990s and early 2000s.
Financial sector experts have blamed the rising incidences of insider-related fraud cases in banks on poverty and weak internal control measures in banks. Recall that the Nigeria Deposit Insurance Corporation, NDIC, in a recent statement disclosed that fraud cases attributed to internal abuse by banks' staff rose by 39 percent to 320 in 2017 from 231 in 2016. ADVERTISING The Corporation also accused banks of inadequate rendition of returns on instances of fraud, forgeries, and cases involving members of their staff who were either dismissed or had their appointments terminated on grounds of fraudulent activities. Speaking to Financial Vanguard, Dr. Uju Ogubunka, President, Bank Customers Association of Nigeria, BCAN, attributed this development to ineffectiveness of banks and lack of electronic fraud awareness by bank customers. He said, "This development implies that banks' internal control measures are weak and ineffective. Read the Article
Refocus your internal control lens on management review controls
White Paper
complianceweek.com
June 22, 2018
Improve your ICFR program by resolving common challenges.
Will the upcoming 16-year anniversary of Sarbanes-Oxley be a cause for celebration or a continued reflection of hitches faced along the way? The ball is in your court. You can be better able to improve your internal control over financial reporting (ICFR) program by resolving common challenges to management review controls (MRCs), including high compliance costs, outdated ICFR programs, and a continued focus on ICFR by regulators.
So what should change? It's time to employ the select pillars-people, data quality, risk identification, documentation, and control design-and modernize your ICFR program through implementation of leading practices, innovation, and technology in an effort to increase the level of precision of the MRCs control performance and enhance the testing approach. Ultimately, these actions may serve to reduce the cost of compliance and increase the reliability of financial reporting. The second paper in Deloitte's new series on ICFR explores how MRCs can be a success story for the upcoming year if management refocuses the internal control lens on these efforts.
Korean banks prep for probe by U.S. regulator BY PARK EUN-JEE koreajoongangdaily.joins.com June 16,2018
Fat-finger fiasco penalty to have long-term impacts on Samsung Securities: experts By Oh Seok-min english.yonhapnews.co.kr June 23, 2018
The financial watchdog's punishment against Samsung Securities Co. over its fat-finger error will not make a financial dent, but it could weaken its market position in the long run, experts said Saturday.
On Thursday, the Financial Supervisory Service (FSS) decided to recommend that Samsung Securities should face a six-month suspension of its services to new investors to hold it accountable for flaws in its internal control system that caused the massive stock trading error. Over the course of paying dividends to its employees in April, one Samsung official mistakenly typed 1,000 shares instead of 1,000 won (US$0.90), leading to the accidental issuance of 2.8 billion "ghost shares" worth around 112 trillion won.
Despite repeated advisories about the mistake, 16 employees quickly sold off a combined 5.01 million shares, causing market chaos and financial losses for investors.
Philadelphia has the worst accounting methods of the nation's 10 largest cities, according to an audit released on Tuesday by Philadelphia city controller Rebecca Rhynhart. The evidence, according to Rhynhart: The city has lost track of $33 million from its largest cash account, and it has made $924 million in accounting errors in the last fiscal year alone. Rhynhart is calling on Mayor Jim Kenney and finance director Rob Dubow to take action after her office's annual Report on Internal Control revealed some worrisome findings. She's asking for better reconciliation of the city's main cash account (from which the $33 million is missing), as well as
a serious plan to combat the city's many accounting deficiencies.
Chuck Gallagher was living the good life. He had a nice house, a nice car and a nice job as a certified public accountant. But he threw it all away when financial pressures led him to "borrow" money from his clients' accounts. He was convicted of embezzlement and tax evasion in 1995 and spent 18 months in federal prison. Wearing an orange prison jumpsuit for dramatic effect, Gallagher described his personal odyssey for a group of HR professionals at a concurrent session at the SHRM 2018 Annual Conference & Exposition on Monday.
He wanted to demonstrate that simply providing an ethics policy for employees to sign won't keep them on the straight and narrow.
"That's just checking the box," he said. "It's not about the rules. It's about what motivates a human being to want to follow the rules. That's what's important."
"Be more concerned with your character than your reputation, because your character is what you really are, while your reputation is merely what others think you are." "The true test of a man's character is what he does when no one is watching."
John Wooden
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 .
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.
