Internal Control Over Financial Reporting (ICFR)

Assuring the accuracy of your financial records

Promoting governance through proficient financial reporting

• Given the heightened regulatory attention, our series on Internal Control over Financial Reporting (ICFR or ICOFR) compliance delves into the advantages of a proactive approach in managing internal controls. This aims to assist your organization in enhancing its ICFR program and increasing cost savings in the process. An efficient Internal Control framework ensures orderly and efficient conduct of business. We at MBG can support you by developing a proper system of internal controls considering necessary regulatory aspects and COSO’s Framework (control ecosystem, risk assessment, control activities, information & communication and monitoring activities) to safeguard your interests by detecting possible risks of fraud and mapping out risks throughout the value chain.
• Our team of experts can help you verify the accuracy and completeness of your accounting records, and thereby achieve the timely preparation of reliable financial information

What are the regulatory implications of ICFR in Middle East?

• 2016 – Qatar
  Qatar Financial Markets Authority (QMFA): Article 8 of Governance code for companies and legal entities listed on the main market.

• 2016 – UAE
  Securities and Commodities Authority (SCA): Article 50 of Resolution No. (7 R.M) of 2016.

• 2017 – UAE
  Abu Dhabi Accountability Authority (ADAA): Article 4 of ADAA Resolution 1 of 2017.

• 2019 – UAE
  Central Bank United Arab Emirate (CBUAE): UAE’s Insurance Authority (IA) Circular no. 21 of 2019.

How does ICFR compliance help your business?

• Improve the quality of financial reporting and compliance.
• Assurance that financial statements fairly reflect all financial transactions.
• Annual/period closure and finalization controls (Controls on preparation of financial statements).
• Enhance the operating model of companies to ensure efficiency.
• Assurance that transactions are carried out in accordance with delegated authorities.
• Assurance that financial resources are safeguarded against material loss due to waste.
• Mismanagement, errors, fraud, omissions and other irregularities.

How can MBG help you?

MBG can assist your business in:

• Improving business governance culture by developing an entity-specific ICFR framework based on financial reporting standards and leading control practices.
• Identifying and mitigating risks by assessing company operations and providing a value-centric mechanism to identify process universe, reporting risks, and their mapping with financial statements.
• Strengthening control design by leveraging from various walk-through, data analytics, and control dynamic techniques to assess the design adequacy of existing controls related to financial reporting.
• Upgrading internal practices by re-engineering existing processes and introducing leading digital practices to strengthen control design.
• Gaining assurance on the effectiveness of their internal controls by deploying various data-driven sampling methodologies to select the right value-centric approach to get wider insights and assurance on the target population, and by using a mix of data analytics and conventional testing techniques to ensure that transactions executed during the period comply with financial reporting requirements.
• Maintaining effective documentation and representation throughout the ICFR life cycle by identifying clear roles, timelines, templates, etc. requirements.

Overall, MBG can help businesses to improve their governance, risk management, and financial reporting. This can lead to a number of benefits, including:

• Reduced risk of fraud and errors
• Improved financial performance
• Increased investor confidence
• Enhanced regulatory compliance

For other Risk Services go here:- Risk Advisory Services