HELP US IMPROVE INTERNAL CONTROL SYSTEMS WORLDWIDE
PARTNERS WANTED:
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 727-538-4113in the USA.
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
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.
Online course pricing has been reduced by over 70%
Internal Control and the Pandemic
By Michael Pregmon, Jr., Ph.D., CICP
Dr. Michael Pregmon, Jr. COO and Managing Director
Much has been already written about the Covid19 Coronavirus Pandemic and will continue to capture our headlines. This has markedly changed our lives. Few challenges are so far-reaching as this. This is an excellent example of a gross failure of control in all aspects. I suppose we can really say that whenever most problems occur, the underlining reason is typically poor internal control practices in some fashion.
Supposedly, the origin of the pandemic occurred from the sale of tainted products at a "wet market" in Asia. A wet market is described as a marketplace where products for consumption are sold that are not guaranteed to have been checked for safety, purity, and wholesomeness. In this case, there was no guarantee before sale as having been inspected for quality and safety. Essentially, no product safety inspection and control prevailed in this distribution channel. So, the problem began since this is a highly contagious virus.
As we "fast-forward" this challenge worldwide, we learned that the virus can be controlled, and infections reduced by limiting personal contact between individuals. This led to lockdowns and social distancing. There were additional control mechanisms installed. And, a reduction of viral incidences occurred. However, once the Lockdown posture was relaxed, the severity of the pandemic continued to increase. It appears the challenge will continue until we come upon a vaccine or cure to specifically halt the virus.
How does this relate to our daily challenges in internal control in business?
Obviously, most business challenges requiring controls are not life threatening as is the Covid19. But in essence, the challenge is similar. If we don't have controls, chaos often results, as has occurred with the wet market described above. When controls are relaxed, the problem often reoccurs as has resulted with the pandemic lockdown relaxation.
This a lesson worth remembering!
ICI ANNOUNCEMENTS
ICI Affiliate News:
ICI WELCOMES NEW PARTNER
ICI has entered into an agreement with Internal Control Institute of Cameroon ("ICI Cameroon") as its representative for Products, Services and Internal Control Certifications (CICS/CICP) in this territory. ICI Cameroon 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:
The Internal Control Institute is conducting certification training in a classroom and online formats 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 (Events) 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:
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:
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:
30 August - 3 September 2020 - Amman, Jordan
13 - 17 September 2020 - Muscat, Oman
18 - 22 October 2020 - Amman, Jordan
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:
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:
On Saturday and Sunday 08:30 am - 12:00 am 13:30 pm - 17:00 pm
10/10/2020
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
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.
In what appears to be a "coordinated social engineering attack," Bitcoin hackers July 15 took control of dozens of high-profile Twitter accounts, including those of Joe Biden, Barack Obama, Bill Gates, Mike Bloomberg, Jeff Bezos, Elon Musk, and Kanye West, and used them to post messages urging people to send thousands of dollars in cryptocurrency.
The compromised accounts of the politicians, tech executives, major companies and celebrities posted fake tweets offering to send $2,000 for every $1,000 contributed to an anonymous Bitcoin address. Twitter temporarily disabled the accounts and announced "what we believe to be a coordinated attack by people who successfully targeted some of our employees with access to internal systems and tools."
If you have questions regarding your company's Foreign Corrupt Practices Act ("FCPA") compliance policy or are worried about an impending federal investigation, you cannot afford to make uninformed decisions. Companies that lack adequate FCPA compliance policies are often targeted by federal authorities due to the increased risk and occurrences of bribery and corruption. Charges under the FCPA can result in significant civil and criminal penalties - including federal imprisonment - and damage to your company's (and your personal) reputation. As a result, FCPA compliance is the crucial for establishing a business environment in which corruption is not tolerated. CEOs Play a Critical Role in Implementing and Executing Their Companies' FCPA Compliance Programs. Many CEOs underestimate the positive impact that they personally can have on their companies' FCPA compliance efforts. However, a tone-at-the-top business culture punctuated with strong CEO leadership is critical to effectively implementing anti-corruption and anti-bribery policies and procedures on a company-wide scale.
Goldman to pay Malaysia $3.9 billion over 1MBD scandal, U.S. settlement seen close
Goldman Sachs will pay $3.9 billion to settle Malaysia's criminal probe over the U.S. investment bank's role in the multibillion-dollar 1MDB scandal, closing a key front in the multi-jurisdictional investigation that has hung over Goldman.
Goldman Sachs shares rose 0.68% in New York morning trading on the Malaysia news and signals the U.S. Department of Justice could be near closing a similar probe.A spokesman for the Justice Department declined to comment."We view this as positive as GS is closer to removing a key overhang for investors, and this provides added comfort that the total settlement amount should be manageable," wrote Steven Chubak, an analyst at New York-based Wolfe Research.
While we have understandably been distracted by the challenges of 2020 - from serious concerns about our health and the well-being of our loved ones to not-so-serious concerns of how we look on video conferences - things in the FCPA world have been humming along. In fact, this year has seen some remarkable FCPA developments that will put it in the record books. We've seen several court cases interpreting the FCPA, major enforcement actions, and new policy pronouncements from the enforcement agencies. All while we've been working in our PJs at our dining room tables. Let's start with the biggest buzz of 2020 - the second edition of the official FCPA Resource Guide, released by the DOJ and the SEC on July 3rd.
Brazil's Gol Linhas Aereas Inteligentes said late on Wednesday that it had fired KPMG as its external auditor, weeks after it raised red flags about the airline's internal controls and ability to survive the coronavirus crisis.
Gol said "there were no disagreements" with KPMG relating to the airline's accounting processes, internal controls or financial statements.
In mid-June, KPMG raised two significant concerns about Gol during the accounting firm's first annual audit of the company after being hired in 2019. The concerns prompted Gol to carry out a review of its financial reporting procedures that lasted a couple of weeks before being finalized. KPMG said it had an "adverse opinion" on the strength of Gol's internal controls regarding the preparation of financial statements, adding that there was "substantial doubt" about the airline's ability to exist a year from now. Ultimately, KPMG reaffirmed its concerns and included the red flags on June 29 as part of Gol's annual report for the year 2019.
A new model for governance and risk management issued Monday by the Institute of Internal Auditors (IIA) makes major updates to the Three Lines of Defense model that has been popular for years.
Called "The Three Lines Model," the new approach is designed to help organizations identify structures and processes that best assist the achievement of objectives and facilitate strong governance and risk management.
In late June, the U.S. Department of Justice ("DOJ") and Securities and Exchange Commission ("SEC") announced that Novartis AG and Alcon Pte Ltd, a former subsidiary of the Swiss drug maker, agreed to pay a combined $347 million to resolve allegations that the companies engaged in corrupt conspiracies to bribe public hospitals and clinics in Greece, Vietnam, and South Korea. This settlement was the result of an investigation jointly performed by the DOJ and SEC into alleged criminal and civil violations of the Foreign Corrupt Practices Act ("FCPA"), and takes place against the backdrop of updated FCPA compliance guidance recently issued by DOJ.
The corrupt scheme by Novartis' Greek subsidiary, Novartis Hellas S.A.C.I., to bribe employees of Greek state-owned and state-controlled hospitals and clinics involved sponsoring travel to international medical conferences, including events held in the U.S.
Internal control system is simply the system of controls put in place by the management of an organisation to safeguard its assets and ensure it is run in an efficient and effective manner. A key element of internal control system is segregation of duties such that no one individual initiates and executes a transaction to the end regardless of the position in the organisation. If this were in place in EFCC, then Magu would not allegedly get the opportunity to initiate recoveries, receive the money and decide where such money is kept.
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
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.
