Internal Control Review (ICR) is a control that should be regularly tested to ensure completeness. Each entity has a set of systems constituting the overall business framework to carry on the business such as policies and procedures for organizational units, accounting systems, HR systems and electronic systems in place. Such systems are called internal control systems.
In Kuwait, the regulatory authorities, i.e. Central Bank of Kuwait for banks and Capital Markets Authority for licensed and listed companies, require internal control review (ICR) on annual basis by an independent auditor to express opinion on the implementation and adequacy of control systems.
Internal Control Review (ICR) become a compliance subject matter that should be considered by concerned companies to get them complaint.
On 10 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 on annual basis.
Added value to business entities from Internal Control Review (ICR) in Kuwait
- Comply with laws, regulations, resolutions and instructions issued by Capital Markets Authority;
- Identify the implementation of the internal control systems within the business entity; and
- Identify efficiency and effectiveness of the internal control systems in place in the business entity and verify if additions or improvements need to be made to the existing systems or new systems should be added to address the gaps detected.
Internal Control Review (ICR) 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)
Consulting Services for Improving the System of Internal Control
Baker Tilly Kuwait offers consulting services for improving the system of internal control with the aim of assisting business entities to ensure full compliance with the regulatory requirements.