Internal Control Review (ICR) covers the assessment and review of the internal control systems in place in a business entity and expresses opinion about the extent of adequacy and effectiveness of internal control systems, which maintain the business entity’s financial integrity, accurate financial statements, efficient operations from different aspects and optimal utilization of available resources.
On 10th November 2016, Capital Markets Authority issued a circular to all shareholding companies subject to the provisions of Module Fifteen stipulates that an independent audit firm shall be assigned to evaluate and review the internal control systems and prepare a report in this regard (Internal Control Report), and shall be submitted to the Authority per annum.
Added value to business entities from Internal Control Review
- Comply with laws, regulations, resolutions and instructions issued by Capital Markets Authority;
- Identify efficiency and effectiveness of the internal control systems in place in the business entity through addition or updates to ensure sustainable updates; and
- Enhance the business entity’s performance efficiency and competitive capabilities through having the ability to face unforeseen changes in the market and define the causes of failure to implement the internal control systems.
Services offered by Baker Tilly
Preparation of the Internal Control Report
Prepare an annual report on assessment of internal control systems for KSE-listed companies and companies licensed by Capital Markets Authority.
(Reference: Capital Markets Authority, Resolution No. 72 of 2015 regarding issuance of Executive Regulations of Law No. 7 of 2010 concerning the Establishment of Capital Markets Authority and Regulation of Securities Business, as amended – Rulebook XV: Corporate Governance, Chapter 6, Article 6.9)