IFAC ISSUES NEW GUIDANCE TO HELP ORGANISATIONS IMPROVE INTERNAL CONTROL
The Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC) has issued new International Good Practice Guidance, Evaluating and Improving Internal Control in Organisations, highlighting areas where the practical application of existing internal control standards and frameworks often fails in many organisations.
"Sound internal control practices that are continuously adapted to changing circumstances are critical for organisations," said Roger Tabor, chair of the PAIB Committee. "Organisations are most successful when they can take advantage of opportunities and defend against threats, both of which are enabled by an appropriate system of internal control."
The new guidance will assist professional accountants in business as they work with their organizations to continuously evaluate and improve internal control, and ensure that it is an integrated part of the organisation's systems of governance and risk management. Better integrated internal controls can save the organisation time and money while helping to create and preserve value.
"Organisations need to evaluate and review their internal controls at all levels and within all functions to continue to achieve their objectives," said Henny Kapteijn, chair of the PAIB Committee's Risk Management and Internal Control Task Force. "A Professional accountant in business, armed with this guidance, can help lead his or her organisation through this process to ensure ongoing, effective internal control."
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