| Control Chatter February 2020
News that Control Professionals Need to Know |
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HELP US IMPROVE INTERNAL CONTROL SYSTEMS WORLDWIDE
PARTNERS WANTED:
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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:
[email protected]
or by phone at
727-538-4113
in the USA.
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Test your Knowledge of Internal Control
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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
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Internal Control online courses
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Start becoming an Internal Control professional today!
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.
To register for one or all of the online training programs click here:
Online course pricing has been reduced by over 70%
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The Who In A Business Plan
By Michael Pregmon, Jr., Ph.D., CICP
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Dr. Michael Pregmon, Jr.
COO and Managing Director
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We have been presenting a business planning process in previous editions of this newsletter. So far we have covered the first three sections of a business plan. To recap, the seven sections of a plan involve thoroughly answering the questions:
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- Where are we?
- Where do we want to go?
- How are we going to get there?
- Who is responsible?
- How much will it cost?
- When will it be done?
- Completing the feedback loop
In this edition we will address the fourth section of a business plan.
Who is responsible?
This may appear to be a simple exercise. Nevertheless, this is often the section that becomes problematic. Planners oftentimes assign the completion of a goal in a plan to a group that has a vested interest in the completion of that goal or objective, only to find that the goal was not completed as expected.
What is the reason this so often occurs? The answer to this is the lack of specific responsibility. It is not unusual to have committees involved in the planning process. Committee participation is likely an excellent method for problem solving. However, in the business planning process and for effectiveness, individual personal responsibility is the most successful.
So, what is the best course of action to follow in completing this section of the business plan?
- Each of the goals and/or objectives identified is section 2 must be individually addressed.
- A specific individual must be assigned to the completion of each objective.
- Committee chairmen may serve the role of individual responsibility for the completion of a single, specific objective. But, if the committee is working on more than one goal or objective, other individuals on the committee with a vested interest in the objective should be assigned the responsibility for completing other goals and/or objectives.
- Ensure that each goal or plan objective has one responsible individual to insure its completion.
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ICI ANNOUNCEMENTS
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ICI Affiliate News
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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:
Botswana:
 ICI has entered into an agreement with Internal Control Institute of Botswana (ICI Botswana":) as its representative for Products, Services and Internal Control Certifications (CICS/CICP) in this territory. ICI Botswana will be responsible for all development activities in this area, including professional training and Certification. Individuals or companies interested in internal control training or Certification should contact:
Contact: Humphrey Chawafambira
Training Plans :
São Paulo - 09 to 13 of March
Rio de Janeiro - 4 to 8 of May
Brasília - 25 to 29 of May
Porto Alegre - 15 to 19 of June
Curitiba - 29 of June to 03 of July
For more details on planned training please on the website below, or send a message to Mr. Eduardo Person Pardini. Email:
[email protected]
China:
The CICS training courses originally scheduled to be held in Hangzhou and Beijing in March this year a
re postponed to May-June, 2020.
Online CICS training and exams will still be conducted.
Individuals or companies interested in inter
nal control training and Certification should contact:
Mr. Qiu Jianting
CCSIT
Room 1039, Block A, Jinmao Building, No. 18,
Xizhimenwai Street,
Xicheng District, Beijing, China
Zip Code: 100044
Mobile phone:
13810588109
Europe:
Training Plans :
ICI Belgium has
started the CICS session in French with 22 participants.
Next sessions are planned in Brussels:
- Dutch: October 2nd 2020
- French : January 2021
For more information on scheduled training and exams please contact Mr.Yves Dupont of ICI Belgium at:
India
For more information on upcoming activities in this area please contact Mr. Summit Goyal of
ICI India at :
Better Business Governance - APAC PTE LTD (BBG) has become a 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:
Better Business Governance
Mr. Sanjeev Gathani
1 Claymore Drive
#08-14, Orchard Towers (Rear Block)
Singapore 229594
Mexico:
For more information on upcoming activities in this area please contact the following:
Middle East:
The CICS exam is now being
provided in Arabic.
Osool Training and Consulting has courses and testing available in Egypt, Jordan, Libya, Muscat, Sudan, Qatar, the United Arab Emirates, Kuwait and Palestine.
Training Plans:
1 - 5 March 2020 - Muscat, Oman
15 - 19 March 2020 - Amman, Jordan
22 - 26 March 2020 - Kuwait
5 - 9 April 2020 - Cairo, Egypt
12 - 16 April 2020 - Dubai, United Arab Emirates
Interested applicants in the region should contact Osool for scheduling for future programs.
For additional information on scheduled ICI Certification and program sessions, please contact:
Lina Salameh
Assistant General Manager
O
SOOL
for Training & Consulting
Mob Oman: +968 95 98 98 20
Mob Jordan: +962 7 99589666
Tel: +962 6 5927171 Ext. 107
Fax: +962 6 5927172
Nigeria:
Leadway Consulting conducts CICS training sessions and examinations in Nigeria.
For more information on upcoming activities in Nigeria please contact:
Pakistan:
For more information on activities in Pakistan individuals or companies should contact : Muhammad Farooq Hammodi
E-Mail:
nardac_k@yahoo.com
Romania:
ICI Romania is planning a CICS course session on October 5 - 7, 2020 and an examination on November 9, 2020.
For more information on activities in Romania contact : Cosmin Serbanescu at the National Institute for Internal Control in Romania.
Tel:
+ 40 752 525 525
Singapore, Malaysia, Indonesia and Taiwan China:
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:
ICI has entered into an agreement with
Business and Financial Consulting
company in
the Republic of Tunisia
(hereinafter referred to as "ICI BFC"
as its representative for Products, Services and Internal Control Certifications (CICS/CICP) in the Republic of Tunisia
. ICI BFC will be responsible for all development activities in this area, including professional training and Certification. Individuals or companies interested in internal control training or Certification should contact:
Turkey:
Training Plans : CICS Certification preparation training to be held in
Istanbul from
9 to 10 March 2020
GOP Mahallesi, İran Caddesi, Karum İs Merkezi
No:21, D Blok, 4. Kat, D:398-399
06700
Kavaklıdere/Çankaya/Ankara
+90 (312) 4425015 T
+90 (533) 4474444 D
Training Plan:
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Course name
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start day
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duration
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CICS®
preparation
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04/04/2020
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4 days
On Saturday and Sunday
08:30
am
- 12:00
am
13:30
pm
- 17:00
pm
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10/10/2020
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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
Zimbabwe:
For more information on activities being planned please contact:
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Internal Control Chatter
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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.
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Top 10 International Anti-Corruption Developments For January 2020
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In order to provide an overview for busy in-house counsel and compliance professionals, we summarize below some of the most important international anti-corruption developments from the past month, with links to primary resources. This month we ask: Which countries brought the largest coordinated foreign bribery resolution of all time? Which countries moved up, and which moved down, in the latest Transparency International Corruption Perceptions Index? How does the UK Serious Fraud Office evaluate the effectiveness of corporate compliance programs? The answers to these questions and more are here in our January 2020 Top 10.
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Improve your data hygiene to beat fraudsters
With cybercriminals presenting an increasing threat, here is advice on how to stay safe online.
By Jessica Hubbard
February 14, 2020
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 Despite the steady stream of news detailing calamitous cyberattacks and data breaches, many employees' poor email hygiene habits continue to leave them - and therefore their employers - vulnerable. "Despite collaborative communication platforms gaining popularity, email is still the communication medium of choice for the majority of businesses and organisations," said Colin Thornton, the founder of South African IT consultancy Dial a Nerd. "It therefore shouldn't come as a surprise that email is also the most popular way for fraudsters to try to take advantage of people online. "Given that a single email attack can disrupt business operations for extended periods of time and often at great expense, financial management professionals and employees have to assess and most likely change their email habits.
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Warren Buffett explains the problem with corporate boards
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Today Warren Buffett shared his thoughts on the current state of corporate boards in his
annual shareholder letter (pdf).
First, the legendary investor addressed the dearth of women. When he started out, it was rare to find a woman in the room unless she "represented family controlling the enterprise." Today, not much has changed-women having a voice in the boardroom continues to be a "work in progress." This comes after Goldman Sachs
announced
last month
that it won't take companies public unless they have at least one "diverse" member on the board.
Another problem is that directors are more likely to go along with management teams than to challenge them-and CEOs are more likely to look for a "cocker spaniel" than "pit bulls" for the board. Having served as a director of 21 publicly owned companies (including Berkshire, Kraft Heinz, Coca-Cola, and Gillette), Buffett has yet to see a CEO who craves an acquisition bring in a board member who is against it-including himself. In other words, the arrangement is almost always in favor of the CEO looking to make the acquisition. "Don't ask the barber whether you need a haircut," he suggested.
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What Every Internal Auditor Needs to Know About Blockchain
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Cyrptocurrencies, like Bitcoin and Ethereum, have their supporters and their naysayers. No matter what you think about the usefulness of these virtual currencies, however, their emergence has given rise to an underlying technology that nearly everyone agrees will be invaluable to the future of finance and accounting: Blockchain.
While blockchain is a key enabler of cryptocurrencies, it has many other uses. Indeed, many financial institutions, online gaming companies, consulting firms, and other companies are already
putting blockchain to use to track online transactions, create records of virtual assets, provide security for critical data, and many other applications. IBM, for example, is investing $200 million to research blockchain and its applications. Sherman Oaks, Calif.-based gaming company, Mythical Games, is using blockchain to verify the scarcity of digital assets contained in their online video games and to record and track ownership of such items by players.
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Coronavirus COVID-19 and corporate governance
By: Natalie Caton, Tom Fotheringham, Patrick Baisden
February 18, 2020
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We recently reported on the World Health Organisation (WHO) having declared a "Public Health Emergency of International Concern" following the outbreak and rapid spread of coronavirus COVID-19, and
whether this might amount to a force majeure event
.
While, as at 18 February 2020, the WHO is yet to escalate the outbreak to the level of a "pandemic", namely, the worldwide spread of a new disease, the Chinese Government, and several foreign governments, have imposed a number of restrictions including mandatory office closures, full or partial lockdown of cities, and travel bans to prevent spreading coronavirus. Similarly, some businesses are partaking in voluntary closures and have implemented travel bans (not only in and out of China but more generally) for their employees.
The coronavirus COVID-19 outbreak and ensuing government restrictions raise corporate governance concerns and create areas of risk across the ESG spectrum that should be considered by companies and their directors and officers.
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Airbus: Five takeaways for compliance officers everywhere
February 17, 2020
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In the aftermath of Airbus' $4 billion global
settlement
, one can't help but wonder: What preemptive action can a company take to avoid similar entanglements? Here are the five biggest takeaways every company in any industry can benefit from.
Compliance officers must be proactive and have significant capabilities. The Airbus affair unfolded at a time when awareness of compliance issues is growing, and every global company has a compliance officer and sometimes a large compliance team. However, if the compliance officer does not exercise proper controls and is not involved in or aware of all relevant activities, a criminal network can form right under their nose. In the Airbus case, it is still unclear to what extent (if any) the compliance officer knew what was being done by his associates.
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Whistleblower Policy Critical For Internal Control In Firms: Keki Mistry
February 14 2020
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Whistleblower policy is a critical element of internal control in companies, and there is a need to place a mechanism to penalise dishonest complainants, Housing Development Finance Corporation Ltd. vice-chairman and CEO Keki Mistry said on Friday.
Malicious accusation lead to unnecessary time wastage in investigating the claims, affects shareholder perception and tarnish the image of organisations, he added. "I do think that genuine whistleblowers need to be encouraged by the regulators. However, there needs to be a mechanism put in place that penalises complaints by dishonest people,"
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Corporate Governance In Indonesia
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Corporate governance is slowly but surely being implemented in Indonesia. The typical form of corporate/business organisation in Indonesia is a limited liability company, but other forms are available, including co-operatives, representative offices and partnerships.
But since the limited liability company is by far the most common form of corporate organisation, in principle, corporate governance is governed by Law No 40 of 2007 regarding limited liability companies (the Company Law). Article 4 of the Company Law states that the applicability of the Company Law does not detract from the obligation of companies to comply with the principles of corporate governance. It should also be noted that the principles of corporate governance only apply to limited liability companies, and these principles differ depending on whether the company is a public or private entity.
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Control Quotes
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You cannot always control what goes on outside. But you can always control what goes on inside.
Wayne Dyer
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Help Keep Everyone Informed...
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| 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
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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. |
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