• Internal Controlling System (ICS)

Internal Controlling System (ICS)

ICS refers to the entire range of internal controlling mechanisms which contribute to the monitoring of the important operational processes within an organisation. Achieving the company’s objectives, ensuring efficient and secure processes and preventing errors and irregularities (either deliberate or unintentional) are the focus of these activities.

Larger corporations generally have an extensive ICS. Under the current auditing law, the internal controlling system (ICS) of public enterprises and economically relevant companies* are subject to an audit. The general principle applies that ICS should be adapted in accordance with the specific characteristics of the company. The minimum requirement is that the company's management ensures that all processes that form part of the financial reporting should be documented and fully integrated.

BDO has developed the “ICS for SME” model specifically for small and medium-sized enterprises that do not yet have an adequate or extensive ICS and are looking for a solution appropriate to their size and also for newly founded or existing companies who need to introduce an ICS. Our model meets the following requirements:

  • Added benefits for the company (more efficient and secure financial processes, prevention of misstatements in financial reporting)
  • Compliance with regulatory requirements
  • Simplest possible structure in terms of implementation, documentation and maintenance of the system and the control mechanisms

 

Interested in our consulting services? Then contact us — we have a branch in your neighbourhood.

An organisation is considered economically relevant if it exceeds at least two of the three following criteria in two consecutive years: turnover of CHF 40 million, total assets of CHF 20 million or 250 full-time employees.