Article

Governance, Risk & Regulatory

Control Self-Assessments

The King report on Corporate Governance requires that a combined assurance model is applied to provide a coordinated approach to all assurance activities. Obtaining the requisite assurance from management as suggested by the King Report is not always easily accomplished.

Control Self-Assessments

The King report on Corporate Governance requires that a combined assurance model is applied to provide a coordinated approach to all assurance activities, including assurance from management and from internal and external assurance providers. Obtaining the requisite assurance from management as suggested by the King Report is not always easily accomplished. One of the most effective ways of obtaining management assurance as part of the combined assurance model is in the form of a Control Self assessments (CSA). 

Control self-assessment creates a clear line of accountability for controls, reduces the risk of fraud, (by examining data that may flag unusual patterns of transactions) and lowers risk profile. A number of other soft benefits have been claimed by organisations performing control self-assessments. These include a better understanding of business operations (by both management and operational staff), stronger awareness of risk practices and a reinforced governance regime. An effective and efficient CSA can assist in limiting the need for extensive audit testing and can reduce auditor fatigue and assurance overload. 

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