Is Your ICOFR Ready for the New QFMA Governance Code Deadline?
Corporate governance in Qatar is shifting fast, and the pressure is undeniable. As the new QFMA governance code becomes effective in August 2025 and a strict one-year compliance window runs until August 2026, listed companies now face a direct question: Are your controls ready for what’s coming—especially when it comes to ICFR?
The latest 2025 regional findings show that approximately 61 percent of the listed GCC firms document weaknesses in their internal control over financial reporting, primarily linked to inconsistency in documentation, indistinct ownership & limited testing. This is a strong indication to firms in the Qatar Stock Exchange that last-minute decisions might be very expensive.
As the deadline approaches, now is the right time to step back and ask: Is your ICOFR framework truly prepared for the new QFMA governance code requirements?
Table of Contents
- Understanding the New QFMA Governance Shift
- Why ICOFR Is Now Under the Spotlight?
- What the New Governance Code Means for Listed Companies?
- Common Gaps Found During ICOFR Audit Reviews
- Practical Actions Companies Should Take in 2026
- How MBG Corporate Services Can Support You?
- FAQs
Understanding the New QFMA Governance Shift
On 4 August 2025, the QFMA rolled out a completely refreshed governance code for listed companies. While it became effective immediately, organisations have until August 2026 to ensure full compliance.
This year-long window may sound generous, but considering the depth of changes from board structure to disclosure expectation, it demands careful planning. Companies applying for a QPSC listing must also align with the new rules from day one.
In short, the new governance code promotes stronger oversight, clearer accountability, and better transparency all of which directly connect to the quality of an organisation’s internal control over financial reporting.
Why Is ICOFR Now Under the Spotlight?
Strong internal control over financial reporting (ICoFR) is no longer optional—it sits at the core of trust between investors, regulators, and management. With global markets expecting cleaner reporting and fewer financial surprises, the QFMA is tightening expectations.
Companies that treat icofr as a once-a-year exercise may find themselves falling behind. In fact, early 2025 data shows that more than half of financial restatements across the region were caused by weak documentation, unclear control ownership, and outdated risk registers.
The new governance code essentially tells companies: If your ICOFR is weak, your compliance posture is weak.
What the New Governance Code Means for Listed Companies?
The updated governance code brings a number of significant modifications that have a direct impact on ICOFR:
- Boards should exercise greater control over financial reporting practices.
- Greater independence is now required, with stricter criteria for independent board members.
- ESG considerations are now tied to compliance reporting widening the scope of internal controls.
- Insider definitions have expanded, which means more individuals fall under compliance monitoring.
- Companies must improve their disclosures, including areas that overlap with icofr audit procedures.
This means the days of “checklist governance” are over. Documentation, design & testing of controls must be in place and updated regularly.
Common Gaps Found During ICOFR Audit Reviews
During an ICFR audit, the same patterns often emerge:
- Control activities are not updated after organisational changes.
- Process owners are unclear, leading to inconsistent execution.
- Walkthroughs are outdated, sometimes not revised for several years.
- IT control gaps persist because companies rely on old systems without reviewing access rights.
- Evidence retention is weak, especially in fast-growing business units.
These gaps make it difficult to demonstrate strong internal control over financial reporting, especially under the new QFMA governance code expectations.
Practical Actions Companies Should Take in 2026
Here are steps companies should begin now—not closer to the deadline:
Reassess your Risk Universe
Financial reporting risks must reflect 2026 realities, including digital transactions and increased regulatory scrutiny.
Refresh your ICOFR Documentation
Flowcharts, narratives, RCMs, and control matrices should match actual practice—not outdated processes.
Conduct an Internal ICOFR Audit Dry Run
A pre-assessment helps identify control failures before the real audit.
Strengthen IT General Controls
System access, change management, and data integrity will be key focus areas for any icofr audit.
Re-Align Boards and Committees
Board composition changes under the governance code must be reflected in reporting structures.
How MBG Corporate Services Can Support You?
MBG Corporate Services works closely with listed companies in Qatar to strengthen icofr, enhance financial reporting systems, and support full alignment with the updated governance code issued by the QFMA. Our team helps businesses assess their current internal control over financial reporting, conduct detailed icofr audit reviews, build practical remediation plans, and guide boards through compliance requirements.
