01 December 2011

IFAC: Proposed international guidance to help accountants improve internal control

The PAIB Committee of the IFAC issued proposed 'International Good Practice Guidance, Evaluating and Improving Internal Control in Organisations' for public comment. Comments on the exposure draft are requested by February 29, 2012.

The aim of the issued guidance is to establish a benchmark for good practice in maintaining effective internal control in response to risk, and help professional accountants in business and their organisations create a cycle of continuous improvement for their internal control systems.

“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 organisations in avoiding these problems.”

With this proposed publication, the PAIB Committee aims to provide principles-based guidance that focuses on the role of professional accountants in business and how they can support their organisations in evaluating and improving internal control as an integrated part of the organisation’s governance, risk management, and internal control systems. This proposed guidance can be implemented regardless of the existing internal control frameworks or standards used, as it deals with those internal control issues that are often unsuccessful because of poor implementation and design.

Press release

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