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Control Chatter                                                     June 2015
News that Control Professionals Need to Know


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In This Issue
Chairman's Corner
ICI Announcements and affiliate news
The (Surprising) Positives of Sarbanes-Oxley.
Survey Roundup: In Independence Lenders Trust.
Report: Attributes of Effective E&C Programs
Foreign Corrupt Practice Act Update.
The ROI of Compliance
Impact of the COSO Framework Principle 11 on business
Nearly half of businesses in region lack anti-bribery policy
Exclusive: SEC hunts hackers who stole corporate emails to trade stocks
Help Keep Everyone Informed
FREE Assessments
Chairman's Corner  

A MAJOR CEO CONCERN IS TALENT

William E. Perry
William E. Perry
Chairman Emeritus
Internal Control Institute

When CEOs are questioned about what keeps them up at night their consistent answer is; regulations, cyber security and talent.  Cyber security has been a recent topic in my columns and needs control analysis;  regulations are complex to interpret and are best left for the organization's lawyers and compliance professionals. However, talent is a organization wide concern, and is projected to be an even greater concern as the large number of baby boomers begin to retire at a rate of 10,000 per day for the next 20 years. Talent is a topic internal control professionals need to address because talent should be recognized as the major asset of an organization. There are three internal control concern regarding the talent in an organization. First does the organization possess the talent needed to fulfill it's mission; second are there controls in place to help assure the best talent in the organization is retained; and third are there processes in place to project when  new talent will be needed and how that talent will be obtained? Some of the traditional measures related to talent, such as turnover ratios, are still applicable, but new assessment techniques and measures are needed are needed. One is benchmarking the types of talents currently employed, and number of employees with that talent in your organization against leaders in your industry. Some people say this is not an area for control analysis, but I believe  it is.

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 V - INTENSIVE TRAINING FOR SPECIALIST IN INTERNAL CONTROLS. Registrations are now open for new classes!.Brazil is also conducting scheduled CICS examinations in the coming months.

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

Email: eduardo@crossoverbrazil.com

Website:http://www.crossoverbrazil.com

 

China:  

A CICS (Shanghai) Training Course and Exam was held on April 23-26, 2015. 

CCSIT is planning to hold their next CICS training course August 5-9, 2015.

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: 

On May 28th ICIB organized its 5th annual IC-AWARD day. During that day 6 finalists presented their IC project, each in 50 minutes. A jury, composed of the laureates of previous years, elected the two winning finalists. The first award was granted to Eric Declerck, head of "Permanent Control" of the BKCP bank, and the second award to Tony Baka, "Enterprise & Operational Risk Manager" of the P&V insurance group. 


 
This yearly IC-AWARD day is now becoming a tradition in Belgium and an occasion for a number of IC professionals, most of them CICS or CICP, to meet and share their IC-project experience. For more information: http://www.icib.org/ic-award-f.ws or http://www.icib.org/ic-award-n.ws

ICIB has also published a professional Position Paper regarding the design and implementation of Internal Control in service companies. The Position Paper can be downloaded from the website of ICIB http://www.icib.org/position-paper-icib.ws . Visitors of the website are invited to request for an opening code of the document. To the members of the ICI network we offer the possibility to simply open the document with this password "PPICIB-2015". For more information on the position paper or scheduled training and exams please contact Mr.Yves Dupont at:     

Email yves.dupont@icib.org

 

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:

Email: hyso@sterlingbizgroup.com 


 
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 

Rafael Gonzalez Martinez, Email: rgmicimexico@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.   For additional information on scheduled ICI Certification and program sessions, please contact:

Ms. Ghaida Masarweh

Certificates and Accreditations Supervisor

g.masarweh@osooltc.com

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
 

Romania:

ICI Romania has launched the operations of ICI in Moldova.  A organizational meeting was held with internal control specialists from banks, financial institutions, ministries and other parties interested in internal control, internal audit and risk management. The meeting was a success and a CICS course is planned during 2015 in Moldova.

For more information on plans and schedules for ICI Romania please contact:

Mr. Cosmin Serbanescu

Phone: 0040 721 562 111

E-mail: cosmin.serbanescu@internalcontrolinstitute.ro

Web: http://www.internalcontrolinstitute.ro/

 

ICI Russia:

ICI partners in Russia have been busy conducting market research for identifying the most urgent and premier areas of interest among the Russian business community. They are also developing an ICI Russia web site. Individuals or companies interested in internal control training or Certification should contact:

Ksenia Belyaeva


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

156 D2 Street, Ward 25, Binh Thanh District, HCMC, Vietnam.

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

Internal Control Chatter
Each month the staff ot 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.

The (Surprising) Positives of Sarbanes-Oxley

By Brian Lane

insidearm.com

June 9, 2015 

What? There have been positives?

Little has been written about positive outcomes arising from the Sarbanes-Oxley Act. Most commentary discusses the downsides of expenses, documentation, auditor expenses, etc. However, we have seen some advantages and they may present some considerations for the accounts receivable management (ARM) industry. Most of the positives arose from the specific provisions that either required certain communications or promoted various ways for issues to be raised.

Read the Article  

Survey Roundup: In Independence Lenders Trust

By BEN DIPIETRO

blogs.wsj.com

Jun 19, 2015

The more independent directors a company puts on its board the better terms it gets from lenders, according to a research paper from Warwick Business School. The study found lenders are willing to provide more debt financing and for longer maturity terms to companies that put more independent directors on their board compared to those with fewer such directors. Before Sarbanes-Oxley regulations requiring a majority of independent directors on boards took effect, the average for companies was 48% independent directors. After the rules were enacted, the number jumped to 78% by 2009.

Click here for a look at some recent surveys and reports dealing with risk and compliance issues

Report: Attributes of Effective E&C Programs

By Jaclyn Jaeger 

complianceweek.com|

June 17, 2015

Which behaviors and attributes differentiate truly effective ethics and compliance programs from those that are less effective? A new report released today offers some much needed clarity around the answer to that question.

Read the Article 

Get the 2015 Ethics & Compliance Effectiveness Report 

Foreign Corrupt Practice Act Update

by Jeffrey Truitt  

jdsupra.com

6/19/2015

Recent criminal indictments of FIFA officials should remind businesses to review their obligations under the Foreign Corrupt Practices Act (FCPA). Those who violate the FCPA can face civil and criminal penalties, including prison time and repayment of twice the gain that results from commercial bribery or other corrupt payments.  The FCPA was passed in 1977 and includes anti-bribery provisions that apply to all domestic concerns and record-keeping and internal control provisions for issuers of securities listed on U.S. exchanges. 

Read the Article

The ROI of Compliance

By Beth Epstein and Eddie Lam  
ftijournal.com

By boosting their budgets for FCPA compliance, businesses can transform it into a source of competitive advantage-and earn concrete returns. When a company's compliance function is strong and effective, its success often is measured by what doesn't happen: fines, legal sanctions, lawsuits, negative press, reputational damage, lost business and market share. When there are no compliance-related incidents, management may cast a covetous eye on the compliance budget. Why not reallocate some of the function's resources to fund activities that boost earnings and increase shareholder value?

Click here to find out why not 

Impact of the COSO Framework Principle 11 on business

By Sia Nam Chie

enterpriseinnovation.net

Singapore

06-12-2015

COSO or the Committee of Sponsoring Organizations of the Treadway Commission was established in 1985 to look into the development of an integrated guidance on internal control. Principle 11 in the 2013 Framework reflects how businesses and their customers are increasingly using mobile communications, cloud computing and social networks today. The Principle[2] develops general control activities over banking technology including online and mobile banking activities. The specific "points of focus" that can help management evaluate the presence and effectiveness of a principle, include:

Click here to find out what's included 

Nearly half of businesses in region lack anti-bribery policy

Many think that offering gifts, entertainment, cash are justified if these acts help their business

gulfnews.com

BY CLEOFE MACEDA, SENIOR WEB REPORTER

June 26, 2015 

Many businesses in the UAE, as well as in other parts of the Middle East and North Africa, don't have any anti-bribery policy in place, making them vulnerable to fraud and corruption. In a fraud survey conducted by EY, a financial transaction advisory services company, only 52 per cent of  3,800 employees of large companies in 38 countries, including UAE, Saudi Arabia, Oman and Egypt, said that they had an anti-bribery or anti-corruption policy and code of conduct in place.

Read the Article 

Exclusive: SEC hunts hackers who stole corporate emails to trade stocks

By Sarah N. Lynch and Joseph Menn

ca.reuters.com

Jun 23, 2015

U.S. securities regulators are investigating a group of hackers suspected of breaking into corporate email accounts to steal information to trade on, such as confidential details about mergers, according to people familiar with the matter. The Securities and Exchange Commission has asked at least eight listed companies to provide details of their data breaches, one of the people said. The unusual move by the agency reflects increasing concerns about cyber attacks on U.S. companies and government agencies.

Read the Article 

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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
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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.