Corporate Management

Internal Control System

For companies based in Italy the recent reform of company law has given a new task to the directors, the maintenance of the Internal Control System (ICS , "assetto organizzativo, amministrativo e contabile" - art. 2381 C.C.).

This duty requires the identification of a set of organizational structures, processes and procedures to ensure the realization of the main components of a sound management as:

  • Business processes effectiveness and efficiency
  • Assets' safeguarding and protection from losses
  • Reliability, integrity and timeliness of accounting and management information

Conformity of corporate conduct to laws, regulations, policies, plans and procedures
Any business organization lives in accordance with its own internal control system.

What is required is to make it clear and formal, and to ensure its consistency and completeness.
The Internal Control System, must also be constantly monitored and the results of monitoring have to be reported periodically (at least every 6 months) to the Directors and auditors boards.

Eventually, the new legislation gives to the Board of Auditors the responsibility to express an opinion on the adequacy of internal control system and its operation (Art. 2403 C.C.).

 Internal Control System

The Internal Control System is formed by two different independent and complementary aspects (CNDC Operations Guide 2000):

  • corporate management control: a set of guidelines, procedures and techniques that allow the planning and subsequent regular and systematic monitoring of the business operations in order to achieve the management objectives
  • administrative and accounting control which referred to the proper accounting treatment of the facts and the company's assets

Multiconsult always takes care of the three pillars of any internal control system: Organizational Processes, Management Control and Information Systems.

For this reason, our consultants have been involved in projects with companies that have demonstrated sensitivity to the immediate issue of the ICS from the first application of the new legislation.

The tools and methodologies used are the same for projects of Business Process Reengineering: AIOWIN of KBSI, which implements the graphical mapping of processes IDEF0 standard logic, and Multiprocess, a package developed internally to support all analysis activities.