Deloitte ICFR Survey 2019 has been saved
Deloitte ICFR Survey 2019
The evolving landscape of Internal controls Over Financial Reporting
Internal controls are transforming, driven by digital technology and evolving regulation. There are increasing demands on the quality, speed and accuracy of information. This survey sought to understand what Heads of Financial Control, and others with internal control responsibilities, see as the main risks, challenges, and opportunities to meeting future requirements. 87% of respondents were SEC registrants, with the remainder being FTSE 100 companies.
The findings suggest that most organisations’ control programmes lack the agility to respond to business change and regulatory developments, for example the possible introduction of a UK equivalent to the Sarbanes-Oxley Act (“UK SOX”). Further, a more varied mix of skills than have traditionally been required are needed to realise the opportunities created by the rapid growth of digitisation.
The responses received also support our predictions, as outlined in the Deloitte Future of Control white paper, that technology-driven transformations are required, supported by radical re-thinking of control operating models. The way a traditional second-line, risk & compliance function operates needs to change.