This dissertation evaluates the significance of Internal Control Systems (ICS) within the framework of the 8th EU Directive. The author analyses the advantages, disadvantages, as well as impending conflicts and limits regarding the implementation process of an ICS in the regulatory environment of the EU. Possible theoretical implementation guidelines are elaborated on the basis of
two commonly known frameworks for internal control, namely 1) the COSO Framework, which considers the general design of an ICS, except for detailed results of IT-based internal controls, and 2) the COBIT Framework, which provides details for the IT processes and their proposed controls.
In addition, the author analyses the findings of a survey in which 27 internal control specialists, auditors, and internal control consultants participated.
The results of the survey reveal that companies face a number of problems and challenges when aiming to implement and maintain an effective ICS. Similar to the findings in literature, the survey sample name the effort, resources, costs, and maintenance, as well as the acceptance, awareness, communication, design and complexity as the main challenges and problems an Internal Control System is confronted with. On the basis of the survey results,
the author provides insights into determining an ICS’ actual state, as well as its target state.
Finally, the author of this dissertation proposes establishing an ICS project in order to create awareness for ICS, to structure the ICS process transparently and within an appropriate time frame. Furthermore, the usage of checklists and frameworks facilitates the implementation process of an ICS. It is recommended to use the COSO and COBIT Framework.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Background
- Analytical Procedure
- Literature Review
- Regulatory Environment
- Fundamental Elements of the ICS
- Basic Idea and Definition of an ICS
- Principles of the ICS
- Objectives of the ICS
- Critical Assessment
- Control Models of the ICS
- Coso
- Background
- Internal Control - Integrated Framework
- COBIT
- Background
- Framework
- Critical Appreciation and Interaction of the Models
- Research Design and Methodology
- Research Philosophy
- Research Approach and Method
- Research Strategy
- Research Time Horizon and Data Collection
- Access to Data and Resources
- Ethical Issues
- Analysis, Discussion and Interpretation
- Presenting the Data: Relevance of the ICS for a Company
- Benefits of the ICS
- Drawbacks of the ICS
- Restriction of the ICS
- Implementation Problems of the ICS
- Areas for the ICS
- Drivers and Prospective Usage of the ICS
- Interpretation: Design in Companies
- Determination of the Actual State of an ICS
- Self-Assessment
- Identifying Risk Areas and Processes
- Roles and Responsibilities
- Determination of the Target State of an ICS
- Roles, Responsibilities and the Analysis Process
- Control Activities
- Realisation, Monitoring and Documentation
- Challenges in IT
- Design of Processes
- Conclusions
- Recommendations
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This dissertation aims to analyze the significance and implementation of internal control systems (ICS) within the framework of the 8th EU Directive in companies. It investigates the regulatory environment surrounding ICS, explores the fundamental elements and principles of ICS, and critically assesses existing control models such as COSO and COBIT. Furthermore, the dissertation examines the benefits, drawbacks, and challenges associated with implementing ICS in companies, including the design and development of effective control processes.
- The regulatory environment surrounding internal control systems
- The fundamental elements and principles of internal control systems
- The benefits and challenges of implementing internal control systems in companies
- The design and development of effective internal control processes
- The role of information technology in internal control systems
Zusammenfassung der Kapitel (Chapter Summaries)
The dissertation begins with an introduction that provides background information on the topic of internal control systems and outlines the analytical procedure employed throughout the work. Chapter 2, "Literature Review," examines the regulatory environment surrounding ICS, delves into the fundamental elements of the ICS, including its basic idea, principles, objectives, and critical assessment. It also presents two prominent control models, COSO and COBIT, along with a critical appreciation of their interactions.
Chapter 3, "Research Design and Methodology," describes the research philosophy, approach, method, strategy, time horizon, data collection methods, access to data and resources, and ethical considerations employed in the study. Chapter 4, "Analysis, Discussion and Interpretation," presents data related to the relevance of the ICS for companies, including its benefits, drawbacks, restrictions, implementation problems, areas for application, and drivers for its use. This chapter also discusses the interpretation of the data in terms of designing ICS in companies, covering aspects such as determining the actual and target states, roles and responsibilities, control activities, and realization, monitoring, and documentation of the ICS.
Schlüsselwörter (Keywords)
The dissertation focuses on key topics such as internal control systems (ICS), the 8th EU Directive, regulatory environment, COSO, COBIT, control models, implementation challenges, risk assessment, and process design. The dissertation analyzes the benefits and drawbacks of ICS implementation in companies, exploring the importance of ethical considerations and information technology in achieving effective internal control.
- Citar trabajo
- Björn Möller (Autor), 2010, Internal control systems within the framework of the 8th EU directive, Múnich, GRIN Verlag, https://www.grin.com/document/159949
