Special report: Internal control from a risk-based perspective
This special report published by the Business and Management Faculty, which looks at internal control from a risk-based perspective, could not have come at a more fitting time. Recent events at France's Société Générale highlight how even the largest and most highly regulated businesses can be severely compromised by the apparent failure of internal controls.
This report was first published last year by the Professional Accountants in Business Committee (PAIB) of the International Federation of Accountants (IFAC). In producing this series of interviews with chief financial officers, and other leaders, the PAIB has provided you with an opportunity to see how other organisations view their internal control systems and how they have ensured that they are as robust as possible. One of the most valuable features of this report is the opportunity to share the CFOs' experience and to read their practical suggestions in the form of the 'key lessons' box at the end of each interview.
Even before recent events, the original IFAC version of this report was the most downloaded paper produced by the PAIB committee in 2007. Because risk management is consistently one of the top 10 issues highlighted by our annual technical needs survey, we felt that this was a useful document to distribute to as wide an audience as possible.
The Financial Services Authority is currently urging banks to review their controls in light of the Société Générale furore. This could be a useful exercise for all of us, whatever sector we operate in.
Published by the Business and Management faculty (SR20 - March 2008)
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Sample report: Internal control from a risk-based perspective
A sample report is available if you are not a Business and Management Faculty member. Subscribe to the Business and Management Faculty to get the full report.