Internal Controls Over Financial Reporting (ICOFR) Internal Controls Over Financial Reporting (ICOFR)

Internal Controls Over Financial Reporting (ICOFR) is now viewed by many organisations as an opportunity to improve the efficacy and efficiency of their operating model. This presents an opportunity for an organisation to proactively strive for value addition in comparison to industry benchmarks, as opposed to viewing it solely as a compliance obligation. ICOFR highlights the procedures put in place by an organisation to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements.

The objective of ICOFR is to assist management in evaluating and testing the effectiveness of controls that are in place to mitigate the risks faced by an organisation. Through the effectiveness of ICOFR, an organisation can reduce the risks of material misstatement, improve financial statement quality, including disclosures, and attain adequate data security