New IFAC Paper Focuses on Internal Control from a Risk-Based Perspective and the Role of Accountants in Business

The International Federation of Accountants’ Professional Accountants in Business (PAIB) Committee has published an information paper on internal control from a risk-based perspective and the role of accountants in business.

This information paper is part of a larger PAIB Committee project on internal controls, according to Edward Chow, chairman, IFAC PAIB Committee. In 2006, the PAIB Committee published “Internal Controls—A Review of Current Developments,” which covered the latest thinking in the area of internal control. Along with the new information paper, “Internal Control From a Risk-Based Perspective,” this forms the groundwork for a principles-based guidance paper on internal control to be published in 2008.

“Internal Control From a Risk-Based Perspective” can be downloaded free from www.ifac.org/store.

The paper is interview-based and helps demonstrate the importance of a risk-based approach to internal controls in helping an organization manage its overall risk. The interviews are from a variety of perspectives and offer “Key Lessons” that shed light not only on the nature of risks in an organization, but also on how to establish an internal control system focused on driving performance.

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