Internal Control and the Transformation of Entities

In their joint survey „Internal Control and the Transformation of Entities“ by the Institute of Management Accountants, the Association of Chartered Certified Accountants and the Internal Audit Foundation, in which more than 1,950 professionals from the areas of finance, accounting and internal audit from a range of different entities worldwide were asked, it was examined to which extent rapid transformation and changes in business models and processes, particularly in relation to enablers of digitalization, impact internal control systems. Subsequently, it was explored to what extent this rapid change results in the need for internal controls to adapt in an agile manner.

The findings of the above mentioned suggest that business models and processes are indeed changing rapidly, whereas the resulting impact on internal control systems differs by region and industry. However, it is apparent that internal control frameworks should be considered as early as possible when facing an enterprise-wide transformation, to ensure increased growth and value for stakeholders. Precisely, when an adaptive and agile leadership is needed for managing such transformation, internal controls must be integrated to these considerations. For this purpose, agile internal control systems may include measures like continuous and real-time monitoring, digitization as well as automated controls.

You can download the survey here.