Based on the Capital Markets Authority Circular No. 11 of 2016 dated November 9,2016, that the companies listed on the stock exchange and the authorized persons must Paragraph 1 provide the Authority with the aforementioned report annually, within a maximum period of ninety days from the date of the end of the fiscal year. An independent audit office should also be assigned to carry out the evaluation and review of the internal control systems and to prepare a report in this regard (Internal Control Report).
Internal Control Report
The framework of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines internal control as “a process effected by an entity’s Board of Directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories”:
Effectiveness and efficiency of operations.
Reliability of financial reporting.
Compliance with applicable laws and regulations.
The Internal Control System Includes:
Control Environment: This sets the tone for the organization, influencing the control consciousness of its people. It is the foundation for all other components of internal control.
Risk Assessment: A The identification and analysis of relevant risks to the achievement of objectives, forming a basis for how the risks should be managed.
Control Activities: A The policies and procedures that help ensure management directives are carried out.
Information & Communication: Systems or processes that support the identification, capture, and exchange of information in a form and time frame that enables people to carry out their responsibilities.
Environmental risks: Processes used to identify, monitor and report the quality of internal control performance or deficiencies to appropriate levels.