top banner

Control Chatter                                                   December 2015
News that Control Professionals Need to Know

 Quick Links
Internal Control Institute Website
ICI Certification
Online Courses
ICI Request for Information
In This Issue
Chairman's Corner
ICI Announcements and affiliate news
Why Small-Business Entrepreneurs Should Care About Cybersecurity
6 'interrelated factors' that can lead to corporate failure
Corporate Governance in the Age of Cyber Risks
Company executives' fear of fraud highest in China
Singapore firms should adopt COSO Frameworks: Industry watchers
Regulation: A moving but immovable target
China issues guidance for internal control of insurance funds
SEC Chair: Audit Quality Improving Since SOX
FREE Assessments
Help Keep Everyone Informed
Chairman's Corner  
CAN CORPORATE CULTURE BE CONTROLLED?
William E. Perry
William E. Perry
Chairman Emeritus
Internal Control Institute
The word is out on what happened to VW with emission control. First the engineers knew they could not meet the US exhaust standards with-in the required time frame and budget. VW's CEO acknowledged that the fraud happened because of a culture of tolerance and rule breaking. The roots of the deception were the misconduct and shortcomings of individual employees; insufficient internal processes to detect such fraud, and a mind-set in some areas of the company that tolerated breaches of VW rules.  I believe corporate culture can be controlled but to happen it must be a high priority of the CEO. First the CEO and senior staff must continually communicate to all employees the importance of doing the right thing by everyone -- this is called the tone at the top. Second internal controls/rules must be put in place to both monitor adherence to the rules and to detect violations of the rules. The VW case can be used by internal control professionals (CICS and CICP) as an opportunity to foster a better culture within their organization and better controls over middle management enforcement of the rules.
Take the Assessment
ICI Announcements
Business Partnership Opportunity
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 and particularly in India, Japan, Eastern Europe, Central and South America, etc.. 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 904-503-1032
in the USA.

ICI Affiliate News:
The Internal Control Institute is conducting certification training in a classroom format for the internationally recognized CICS certification in internal control. Information on these programs regarding dates and schedules can be directed to the affiliate named below.

Brazil:
NEW CLASS FOR INTERNAL CONTROL - INTENSIVE TRAINING FOR CERTIFIED INTERNAL CONTROL SPECIALIST (CICS)
Brazil has conducted 5 classes so far in 2015.  They are feeling an increase in people asking for information on certification and courses. In addition, because of the issue of corruption, companies are more sensitive to strengthening their internal controls.  Registrations are now open for new classes!.
For more details on planned training please check on the website below, or send a message to Mr. Eduardo Person Pardini . 

China:  
China (Beijing) held a CICS Training Course on  November 25-29 in Beijing. 

The CICS (Hangzhou) Training Courses on November 14-17 was  postponed  to January, 2016. 
Please note CCSIT recently moved to a new company office, the new address  is  shown below. Individuals or companies interested in internal control training and Certification should contact: 
Mr. Qiu Jianting
Room 502, Unit 1, Meihui Building, No. 58, Dongzhong Street, 
Dongcheng District, Beijing, China
Zip Code: 100027
Mobile phone: 13810588109
Email:  
Website:  http://neikong.com/

Europe: 
For more information on the scheduled training and exams please contact Mr.Yves Dupont at: 
 
Malaysia:
ICI Malaysia has started class-room training and is planning a further schedule of classes. Interested individuals and organizations in Malaysia should contact SBAC for specific information about the programs being offered. 
Please contact So Hsien Ying at:

Mexico:
ICI has entered into an agreement with The Internal Control Institute Mexico, S.C. as its representative for Products, Services and Internal Control Certifications (CICS/CICP) in Mexico. ICI Mexico will be responsible for all development activities in Mexico, including professional training and Certification.  For more information on upcoming activities in this area please contact the following:
Antonio Salas Hernandez CICP,  Email:  ashicimexico@gmail.com 
Joaquin Prendes Herrera, Email:  jphicimexico@gmail.com 

Middle East:
The CICS exam is now being  provided in Arabic. Osool Training and Consulting has developed an ambitious plan to deploy CICS Certification programs.  Osool plans to make courses and testing available in Jordan, Libya, Muscat, Sudan, and Palestine. In addition, Osool is now marketing CICS Certification in Qatar, the United Arab Emirates and Kuwait, Osool's expansion plan will soon cover Saudi Arabia, Egypt and some other Arab countries. Osool just completed a certification training program and exam on 9/20/2015. 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:
Ms. Ghaida Masarweh
Certificates and Accreditations Supervisor
Phone: 962 6 5927171 X107
Or Tarek Ruhmi at the E-mail address below. 
Contact: Tarek Ruhmi at: tarekvbs@osooltc.com

Nigeria:    
Leadway Consulting has completed conducting a CICS training sessions and examinations in Nigeria. For more information on upcoming activities in Nigeria  please contact:
Mr.  Joel Aluko  tunjialuko5@yahoo.com

Pakistan:
ICI has entered into an agreement with ICI Pakistan as its representative for Products, Services and Internal Control Certifications (CICS/CICP) in Pakistan. ICI Pakistan will be responsible for all development activities, including professional training and Certification.  Individuals or companies interested in internal control training or Certification should contact:
Contact: Muhammad Farooq Hammodi
E-Mail: nardac_k@yahoo.com

South Africa:
ICI SA reports they are completing work on their website and reviewing and aligning course materials.
For more information on upcoming activities in South Africa please contact:
Mr. Francois de Villiers:
ICI South Africa
(083) 407-2131
101 Ferndale Street
Brackenfell, 7560
South Africa
 
Vietnam:
ICI Vietnam has also hosted their first CICS exam and has completed the process to certify their first CICS and CICP professionals.  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
Email: info@fmit.vn 
Website: www.fmit.edu.vn

Zimbabwe:
For information on other activities being planned please contact:
Mr. Proctor Nyemba at:  admin@internalcontrolinstitute.co.zw

Internal Control Center of Excellence at Saint Petersburg College:
The ICI "Certification Series" has been completely updated and is avaliable 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. For Information or to registar for one or all of the online training programs visit:   Online Internal Control Courses hosted by St. Petersburg College

Take the Quiz - 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
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.
Why Small-Business Entrepreneurs Should Care About Cybersecurity
By Matei Gavril
entrepreneur.com
DECEMBER 1, 2015
When hacking stories hit the headlines, they're usually about large companies -- organizations that have millions of users. These companies invest huge amounts of money in keeping data secure, so any breach is a serious issue. Small businesses and entrepreneurs often neglect cybersecurity, because they assume it's someone else's problem, or their data is not worth stealing. But there are lots of reasons why cybersecurity should be priority number one for entrepreneurs. It's not good enough to pretend it doesn't affect you, or  claim your operations are too small . And just because you aren't aware of a hack, doesn't mean it isn't happening. Check out this  real-time hacking map to see the attacks that are happening right now.
6 'interrelated factors' that can lead to corporate failure
29 November, 2015
Lessons from the record-breaking bankruptcies of WorldCom and Nortel.
In both cases the three initial factors - ineffective leadership and governance, followed by unduly risky strategic decisions and then by lax implementation - set the stage for failure. WorldCom was the largest bankruptcy in US history when it filed in July 2002 with US$35 billion of debt, while Nortel Networks was once the powerhouse of the Canadian tech industry before it went bust in 2009 following an accounting scandal. A new study outlines the six factors that led to the collapse of the two telecom giants.
Corporate Governance in the Age of Cyber Risks
knowledge.wharton.upenn.edu
Dec 1, 2015 
Corporate boardrooms are waking up to the encroaching, systemic threat of cybersecurity risks. But while awareness is growing - more than 80% of boards now discuss cybersecurity at most, if not all, of their meetings - many directors simply are not sure if they have the information and tools at their disposal to provide effective oversight of top management to handle today's hacking dangers, especially intrusions sponsored by nation-states. Information and expertise in this area are scarce. Companies have demonstrated a reluctance to disclose data breaches and have been cautious in contacting authorities. The government has made some efforts to encourage public-private cooperation but at the same time has sought to hold the private sector responsible for data breaches. 
Company executives' fear of fraud highest in China
By Enoch Yiu
scmp.com
29 November, 2015
Executives in China are more afraid of risks of fraud than anywhere else in the world, finds a survey conducted by commercial investigative firm Kroll. Some 73 per cent of China-based executives in the Kroll annual survey said they were affected by fraud, marking a 6 per cent increase from last year. The annually held global survey interviewed 768 senior executives worldwide. China ranks the most vulnerable in 9 out of 11 fraud types, with 87 per cent of Chinese executives saying they are vulnerable to theft of physical assets or stocks, much higher than the global average of 62 per cent. Eighty-one per cent of Chinese executives worry about theft of their corporate information, compared with the global average of 51 per cent. Some 81 per cent of Chinese executives also worry their companies face the risk of corruption and bribery, compared with the global average of 40 per cent.
Singapore firms should adopt COSO Frameworks: Industry watchers
channelnewsasia.com
08 Dec 2015
The COSO Frameworks is a simplified approach towards enterprise risk management, which helps organisation design and implement internal control, according to the Singapore Accountancy Commission and Protiviti.  The COSO Frameworks will benefit Singapore-based companies in raising their standards of corporate governance and should be pushed for national adoption, said industry watchers on Tuesday (Dec 8).  Developed by the Committee of the Sponsoring Organization (COSO), the COSO Frameworks is widely acknowledged as a yardstick for good risk management and internal controls and is applicable to organisations of all sizes, industry and maturity, according to the press release issued by the Singapore Accountancy Commission and consultancy firm Protiviti.
Regulation: A moving but immovable target 
By Neil Amato 
cgma.org
December 07 2015
Compliance requirements related to the Patient Protection and Affordable Care Act, the signature law behind US health-care reform, are just one example of the regulatory changes keeping US finance departments busy these days. Amid local, state, and federal regulations, CPA decision-makers have a hard time finding time for forward-looking analysis. Regulatory requirements and changes, for the 11th consecutive quarter, top the list of challenges in an American Institute of CPAs (AICPA)  survey of finance executives  in business and industry. The strategies for dealing with regulatory clutter vary, but one thing is certain: Regulation is not going away.
China issues guidance for internal control of insurance funds
chinadaily.com.cn
2015-12-16
China's insurance regulator on Tuesday issued a guidance for internal control of insurance funds partly to raise the sector's risk management capability. The China Insurance Regulatory Commission (CIRC) said in a statement on its website that the guidance will improve internal control for the use of insurance funds, enhance the sector's ability to manage risks and help the sector be prudent in investment and prevent risks. Along with the guidance, the CIRC also unveiled three separate documents to set standards and procedures for insurance funds' investment in bank loans, fixed-income products, stock and mutual funds investing mainly in stocks.
SEC Chair: Audit Quality Improving Since SOX
But Mary Jo White cautions that recent PCAOB inspections have found "significant deficiencies" and audit committees may be taking on too much work.
ByMatthew Heller
CFO.com
December 10, 2015 
Investor confidence in audited financial statements and independent auditors is "high," but there are still too many cases of companies and their auditors failing to fulfill their obligations adequately, according to U.S. Securities and Exchange Commission Chair Mary Jo White.In a speech Wednesday, White said there had been a general reduction in the number and severity of restatements of financial statements since the implementation of the Sarbanes-Oxley Act, reflecting in part "improvements in audit quality and the enhanced role that auditors generally now discharge in providing an essential check in the financial reporting process."
FREE Assessments
The professional staff of the Internal Control Institute™ has developed assessment tools for both organizations and individual professionals.For a FREE Assessment, please click here. 
CONTROL QUOTES
Happy New Year...Good will to all men and women around the world may there be peace on earth.
Pete Warner
ABOUT ICI
 
ici logo The Internal Control Institute™ (ICI) a worldwide organization  devoted exclusively to internal control and corporate governance. The Institute is dedicated to the developement 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
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 .
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.