Internal Controls

With the array of emerging technology constantly introduced into the environment, organizational changes, evolving ERP systems, etc., we need to refocus back on the basic tenets of what we need for successful transformations – no matter what change triggers the need for transformation.

We help organizations assess the causes of the compliance breakdown and identify the gaps in policies, procedures, controls and governance to be remediated.

In a business environment which is often complex (regulations, organizational structure) and fast changing (e.g. new technologies, new business models, expansions and with that new risks), many companies need an Internal Controls function which can scale up or scale down when needed, and which has the right expertise in place to provide valuable insights into many different risk areas (finance, operations, automation, digitalization, compliance, cyber, IT, etc.).
Deloitte could be your partner to embed this flexibility through internal controls co-souring or outsourcing support. In both models, we often provide Subject Matter Specialists to support Management with establishing, optimizing and maintaining an Internal Controls system which truly supports the business in meeting its business objectives. Specifically, we can draw on SME support from a global perspective and can embed our accelerators to modernize and digitize your Internal Controls function. We also work with the Internal Controls leadership team to help it develop the team and function.

DCI is a tool that helps your business work smarter by reducing manual and Excel-based task management. DCI is based on the work you have already put in your Excel sheet, so no work is wasted.
Overall, the tool helps you embed risks, controls and other tasks in your processes, organization and strengthens ownership with your employees across several disciplines.

We help organizations assess and evaluate the impacts of compliance failures, including analysis through the use of data and analytics, and develop, where appropriate, targeted or whole-of-firm response strategies.

A controls culture helps bind people together and can drive execution of and adherence to the organization’s control ambitions and objectives. However, a controls culture can also do the exact opposite. Creating a strong and positive controls culture is essential in ensuring employees know what is required and expected of them. Controls culture is key to succeeding with your internal controls.

Providing timely controls effectiveness insights to Executive Management and the Board of Directors is an element which draws more and more attention. Stakeholders of the Internal Controls function need fast, accurate and reliable insights, preferably based on real cases (exceptions), in order to respond timely and mitigate risks.
Continuous Controls Monitoring, through the usage of Data Analytics and GRC Tooling, assists Internal Controls functions in providing such insights. This can effectively be deployed for any risk area, being it financial risks, compliance risks, operational risks or cyber risks. An effective method is to embed dashboarding functionalities in order to provide readable insights at a fast pace.

In the light of global market developments, companies reach out to Deloitte for inspirations on how to turn first and second line controls into measurable value drivers for their core operational business processes. In current market conditions, control transformations will be scrutinized for immediate and measurable value adds as well as fit and business criticality.

The future of controls is digital. This requires that the companies’ Internal Controls frameworks are revised to keep up with the constant and rapid changes – especially technological changes. To ensure an adaptable and cost-effective Internal Controls framework, we assist our clients in entering unchartered territory and in creating new, enhanced and value-driven frameworks.

As estimated by ACFE (The Association of Certified Fraud Examiners), organizations worldwide lose around 5% of their annual revenues to fraud. ACFE reports that the lack of effective internal controls is the primary contributing factor in nearly a third of all fraud cases.