Dedication, transparency, and experience – three factors which our team of professionals are made of. We formulate a comprehensive report for companies listed on the Stock Exchange to monitor the status and practical application of the internal control system. Our objective is to gain knowledge on how companies are aiming to minimize the risks of errors, manipulation, collusion and fraudulent activities and present fair financial reports.
Internal Control Review (ICR)
According to the Committee of Sponsoring Organizations of the Treadway Commission (COSO), ‘Internal Control’ is broadly defined as:
Internal Control is a process, effected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting and compliance.
Components of ICR Systems
Control Environment:
- Demonstrates commitment to integrity and ethical values
- Exercises oversight responsibility
- Establishes structure, authority and responsibility
- Demonstrates commitment to competence
- Enforces accountability
Xero - Accounting Software
We are in Partnership with Xero - an Accounting Software - to ease your Financial Management processes & provide real-time insights on your business' financial health.
Risk Assessment:
- Specifies suitable objectives
- Identifies and analyzes risk
- Assesses fraud risk
- Identifies and analyzes significant change
Control Activities:
- Selects and develops control activities
- Selects and develops general controls over technology
- Deploys through policies and procedures
Information & Communication:
- Uses relevant information
- Communicates internally
- Communicates externally
Monitoring Activities:
- Conducts ongoing and/or separate evaluations
- Evaluates and communicates deficiencies
Regulatory Requirements
- For listed companies in Kuwait Boursa in the State of Kuwait, Law No. 7 of 2010 concerning the Establishment of Capital Markets Authority and Regulation of Securities Activity was promulgated on 21 February 2010 and its Executive Regulations were issued under Resolution No. 72 of 2015 on 9 November 2015, which address the Internal Control in Module 15 – Corporate Governance.
- For licensed persons by the Capital Markets Authority (CMA) In addition to internal controls that are mandated for listed companies, the licensed persons shall comply with additional internal control systems in accordance with Module Six – Internal Policies and Procedures of Licensed Persons
- For licensed financial institutions by the Central Bank of Kuwait (CBK) As per the Central Bank of Kuwait (CBK) circular dated 14 November 1996, the internal control system shall cover the following:
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Internal controls related to accounting records and other records
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Organizational structure
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Performance monitoring and control procedures
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Segregation of duties and responsibilities
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Authorization and approval
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Completeness and accuracy
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Safeguarding assets
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Manpower
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Controls in an information technology environment
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Internal audit activity
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