Summary:
Position paper entitled “Towards Common Principles for Internal Control & Risk Management Systems at Listed Companies in Europe” dated 26 Jan. 2010
In the context of article 41(2)(b) of the “Audit Directive”, EuropeanIssuers states that
– the EU approach, with public information on financial reporting systems being merely a description summary, is favoured over the US approach
– any ICRM systems should take the specific characteristics of the company into account; companies have the flexibility whether to have an audit committee and an internal audit department
– the overall monitoring by the audit committee is an oversight function looking either at ICRM systems globally or at ICRM systems related only to financial reporting, in accordance with a Board decision, national corporate governance codes or national legislation
– ICRM is a shared responsibility, not limited to the Board and Audit Committee
Position paper:
Towards_Common_Principles_for_ICRM_European_Companies__final_100127.pdf
