top banner

Control Chatter                                                     April 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
What's your fraud IQ?..
The Top 5 Financial Crimes of the 21st Century
Report: Majority Adopt New COSO Framework..
Gangs of hackers cause cyber breaches to spike 23%
What's the Cost of a Cyberattack?.
Four strategies for whistleblower support.
The Corporate Governance Climate in 2015.
Companies Act 2013 and internal financial controls.
Clarified Auditing Standards: Assessing Risks of Material Misstatement..
Help Keep Everyone Informed
FREE Assessments
Chairman's Corner

COMPUTER PASSWORDS ARE OBSOLETE
William E. Perry
William E. Perry
Chairman Emeritus
Internal Control Institute

 One of the weakest links in computer security is passwords. The use of computer passwords poses three risks to computer security. First many owners of passwords do not offer adequate protection over their passwords; second most owners of passwords do not change them often enough, and third dissatisfied  employees can give passwords to unauthorized personnel. Most control professionals are waiting for a better method.  Help is on the way. Today, for example, there is a method to track the pattern of user keystrokes. One version, traces keyboard strokes and mouse movements to make sure users are authorized. These mouse movements and keystroke patterns are as unique as a finger print. While passwords can be circumvented, tracing mouse movements and keyboard patterns can check to see that authorized users are the ones actually using the computer in real time.  If a variance is detected computer processing can be stopped.  Fingerprinting and facial recognition systems, among others, are rapidly being developed. Internal Control professionals need to keep themselves and their organizations up to date on the latest technological developments in securing their systems.
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@comcast.net or by phone at 904-503-1032

in the USA.

 

Website and Email Upgrade

The Internal Control Institute is experiencing some technical issues with our website upgrade. The website issues have impacted Email traffic as well during this time. The Institute is in the process of implementing our new website design and switching to a national web host. We are hoping this upgrade process will be of short duration. In the interim, please send all Institute Email to Dr. Michael Pregmon, Chief Operations Officer, at:


mpregmon@comcast.net

 

Dr. Pregmon will ensure that your mail gets to the right department for an immediate response. 

We appreciate your patience during our transition.

 

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 (Beijing) Training Course was held on March 25-29, 2015, and the CICS Exam was held in the afternoon on March 29, 2015. 
Beijing CICS Training Class March 2015

The next CICS training class will be held  in Shanghai on April 23-26, 2015. 

Individuals or companies interested in internal control training and Certification should contact Mr. Qiu Jianting at;

China Control & Safety Information Technology (Beijing) Co., Ltd.

Room 202-203, East Side Building of No.1 Teaching Building, Beijing Institute of Technology, No.5 Zhongguancun South Street, Haidian District, Beijing, China 

Zip Code: 100081

Mobile phone: 13810588109

Email:  
Website:  http://neikong.com/

 

Europe: 

ICIB just 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 feel free to contact 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


Infogix Certified Controls Analyst:

Professionals and employers alike will benefit from validation of their level of expertise."To learn more about the ICCA or ICCD certification programs, visit the Infogix University website now at www.infogix.com/certify! Co-sponsored by the Internal Control Institute
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.

What's your fraud IQ?

By Andi McNeal, CPA 

journalofaccountancy.com

April 13, 2015

The groundwork for effective fraud prevention and detection is found in an ethical staff that is expected to make ethical decisions and then is fully supported in doing so. Organizations that enact robust ethics programs send a clear message to their employees about which behaviors are acceptable and which behaviors are prohibited. Do you know the hallmarks of an ethical corporate culture? Are you ready and able to help institute an effective ethics program at your organization? 

Take this quiz and find out.
The Top 5 Financial Crimes of the 21st Century
maylawpc.net

At a time when violent crime rates are reaching historic lows, a different kind of criminal was getting filthy rich by fleecing others in America. Instead of ski masks, crowbars, and guns, these scofflaws typically wear a suit and tie to work and carry a nice leather valise. The fact that they appear refined and are often well educated allows these crooks access to ungodly sums of money. And by the time they're finally discovered, most have either made or lost fortunes of other people's money. With that in mind, 

Here is our list of the five biggest financial felons of the century. 
Report: Majority Adopt New COSO Framework
By Tammy Whitehouse 
complianceweek.com  
April 13, 2015

With more than 3,000 filings collected through early April, three-fourths have disclosed that they have adopted the 2013 COSO internal control framework, with the rest either remaining on the 1992 framework or not disclosing what framework they followed. Based on an ongoing, unpublished analysis of filings through April 3 by consulting firm Protiviti, 2,318 public companies disclosed they have adopted the Internal Control -- Integrated Framework as updated by the Committee of Sponsoring Organizations in 2013. 

Read the Article

Gangs of hackers cause cyber breaches to spike 23%

By  Elizabeth Weise

USATODAY

April 14, 2015

Organized criminal gangs of hackers got smarter, faster and more ubiquitous last year, pulling off 312 major breaches against companies. That's up 23% from the year before,Symantec's 2014 Internet threat report found.Health care companies were a major focus of hackers, with 37% of breaches in that sector, compared with 11% in retail and 10% in education, the security company's yearly look at the seamy underbelly of the Web found.

Read the Article 
What's the Cost of a Cyberattack?

A flurry of attempts to model the risk of a corporate cyberattack hasn't provided many answers.

By David M. Katz

CFO.com

March 30, 2015 

In a February editorial about the buildup of cyberattacks between the United States and Iran, The New York Timesquoted President Obama's observation that, compared with conventional weaponry, cyberweapons provide "no clear line between offense and defense." Thus, getting into the enemy's networks to exploit its weakness and disable its ability to attack you is both offense and defense. Citing "major banks, Sony Pictures Entertainment, [and] an electrical utility," the newspaper observed that such recent examples reveal that even corporate computer systems once considered impregnable are vulnerable to attack.

Read the Article 

Four strategies for whistleblower support

By Apeksha Kaushik,

TimesJobs.com 

Apr 6, 2015

Whistleblower policy in companies provides many benefits, including an opportunity for the management to reinforce relevant policies and make changes to current procedures where applicable, says Vinay Jaswal, vice-president-HR, Interglobe Hotels.

There is a symbiotic relation between whistle-blowing and an organisation's culture, adds Jaswal. A key question for internal audit, when providing assurance to the board that whistleblowing arrangements are effective, is therefore whether the organisation's culture allows people to speak out without fear of recrimination and encourages them to report concerns.

Jaswal shares four strategies for effective whistleblower support 

The Corporate Governance Climate in 2015

By: Patricia Lenkov

huffingtonpost.com

Posted: 04/06/20

In the ever-changing and always dynamic world of corporate governance, it can be challenging to keep up with the trends and developments when not focused on these matters full-time. Post corporate implosions of the past 10 years and the subsequent regulatory changes and demands on continuous improvement and increased transparency in the boardroom have heightened the pace of change for boards everywhere. 2015 will surely continue this trend. Accordingly, here are some of the important issues from the world of corporate governance that should continue to make the news and be the subject of debate and speculation:

Read the Article 

Companies Act 2013 and internal financial controls

Implementation will be weakened if we fail to define terms used in the Act clearly and precisely

By Pratip Kar 

business-standard.com

April 18, 2015 

A swathe of high-profile corporate disasters in the US and elsewhere around 2000 made governments, regulators and corporations grasp afresh the significance of internal controls. These disasters were largely attributed to the failure to implement internal controls. But rapidly changing terminology has been one obstacle in the development of an accepted understanding of internal control. 

Read the Article 

Clarified Auditing Standards: Assessing Risks of Material Misstatement

by Larry Perry CPA 

accountingweb.com

Apr 15 2015

The objective of the auditor, according to AU-C Section 315, is "to identify and assess the risks of material misstatement, whether due to fraud or error, at the financial statement and relevant assertion levels through understanding the entity and its environment, including the entity's internal control, thereby providing a basis for designing and implementing responses to the assessed risks of material misstatement."

Read the Article 
CONTROL QUOTES
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 .
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 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.