Delegation of Authority Matrix

Delegation of Authority Matrix

Delegation of Authority Matrix

The documentation of the Delegation of Authority Matrix is a key requirement of the internal control in business entities as it defines the financial and administrative responsibilities and authorities delegated to the incumbents in charge of approving the decisions and transactions within business entities. This will enhance the control and governance of work flow of official transactions in the business entities and prevent fraud and deceit. This concept applies to all business entities on optional basis.

For companies regulated by Capital Markets Authority in the State of Kuwait, they should comply with the requirements of the Executive Regulations of Law No. 7 of 2010 comprising sixteen modules where Module 15 – Corporate Governance – contains controls for the requirement to observe the Four Eyes Principles when delegating the financial and administrative authorities in order to achieve the internal control.

Module 15 – Corporate Governance – sets forth:

Article 3-7item 11, the Board of Directors’ responsibilities include the following
  1. Approve and develop the rules and regulations related to the Company’s business including the determination of roles, responsibilities, duties and functions among different organizational levels.
  2. Approve the policy on delegation and implementation of tasks assigned to the executive management.
Article 3-7item 12, the Board of Directors’ responsibilities include:
Define the authorities delegated to the executive management, decision-making procedures and the delegation period. The Board of Directors shall also determine the matters for which it reserves the authority to decide thereon.
Article 6-6The company shall have internal control systems, which cover all the company’s activities. The internal control systems maintain the company’s financial soundness, data accuracy and effectiveness of its operations in various aspects; provided that the company’s organizational structure shall consider the Four Eyes Principles of the internal control process (Four Eyes Principles).

Added value to business entities from Delegation of Authority Matrix Services

  • Clearly define the responsibilities, allocate the work duties and increase the productivity.
  • Organize the business and define the roles.
  • Provide quick decision-making process and create atmosphere of trust.

Services provided by Baker Tilly

  • Development of Delegation of Authority Matrix.

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