IT Governance: Implementing Frameworks and Standards for the Corporate Governance of IT

CHAPTER 7: INTERNAL CONTROL FRAMEWORKS

Internal control frameworks have traditionally been designed to deal primarily with financial risk: the risk that errors or dishonesty could lead to loss of corporate money. From a corporate governance perspective, it is now increasingly understood that internal controls must respond to the much wider range of risks identified within the organisation’s enterprise risk management (ERM) framework.

UK-based companies look primarily to the Turnbull Guidance on internal control and, while the work done on internal control frameworks by the international Treadway Commission and the US Public Company Accounting Oversight Board (PCAOB)⁵⁵ are more directly relevant to US-listed companies they are also, because ...