The Professional Accountants in Business
(PAIB) Committee of the International Federation of Accountants
(IFAC) has issued an exposure draft of international guidance on
internal control.
The aim of the guidance Evaluating and
Improving Internal Control in Organizations is to establish a
benchmark for good practice for accountants in business in
maintaining effective internal controls in response to risk.
IFAC said that the guidance can be implemented
regardless of existing internal control frameworks or standards as
it deals with internal control issues that are often unsuccessful
because of poor implementation and design.
Stakeholders have been asked to file comments
by 29 February 2012.
“Strong internal control is both one of the
best defences against business failure, and an important driver of
business performance. It mitigates risk and adds sustainable
value,” said Roger Tabor, chair of the PAIB committee.
“We looked at the sort of things that can go
wrong with the way organisations apply internal controls, and drew
out principles that professional accountants in business can apply
to support their organizations in avoiding these problems”.
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