The International Federation of Accountants' Professional Accountants in Business Committee has released a publication summarizing key internal control frameworks, highlighting recent legislative and other initiatives, and discussing the role of internal control in enhancing corporate governance.
In recent years, regulations have focused on the development and strengthening of internal control systems as a way to minimize business risk and protect shareholder investments.
"Professional accountants play an important role in supporting the internal control systems of their organizations," said committee chairman Bill Connell, in a statement.
"This new paper describes much of the current thinking on internal control from countries around the world and is the first step in the PAIB Committee's program to develop practical guidance on internal control."
The paper finds that current views on internal controls support a principles- and market-based approach in which organizations make a commitment to develop internal control systems particular to their own specific internal and external environments. It also identifies the importance of the tone at the top and the culture and ethical framework throughout the organization to the effective implementation of any system.
The publication, "Internal Controls -- A Review of Current Developments," can be downloaded at www.ifac.org/store.
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