Abstract
It is necessary to distinguish the internal controls from external ones: the former are the responsibility of the appropriate bodies and business functions belonging to the organization of the companies, while the latter are exercised by subjects who fall outside the company and the functional structure of the company (audit company, Consob, Bank of Italy, etc.). In recent decades there have been several scandals that have hit large enterprises, also Italian ones, which have increased interest in the issue of corporate governance and in the inefficiencies presented in internal corporation controls (Munroa & Stewart 2011). Enhancing the effectiveness of controls, in particular the internal ones, has become a need increasingly felt by international and national legislators. Internal controls are an essential tool to achieve business goals (operating constantly in terms of efficiency and effectiveness), and at the same time to avoid wastage of resources, to safeguard corporate assets, producing accounting information and reliable management, to observe the strategies, the policies and the corporate procedures and, especially, to ensure compliance with laws and regulations. in this work, it will discuss, in the italian context, the role of the board of directors and the board of statutory auditors within the (SCIGR) System of Internal Control and Risk Management (Jaggi, Allini, Manes Rossi, & Caldarelli, 2016). Moreover, the study moves the analysis to other corporate figures well determined and in constant evolution, including the head of internal audit, the activity of compliance, the supervisory body ex D.Lgs.231/2001 and the manager in charge of drafting corporate accounting documents.
Highlights
It is necessary to distinguish the internal controls from external ones: the former are the responsibility of the appropriate bodies and business functions belonging to the organization of the companies, while the latter are exercised by subjects who fall outside the company and the functional structure of the company
It can be observed in the Civil Code, how the specific reference to the monitoring of the internal control system is not present in the general rules on the board of directors; the only trace in this respect refers to the monistic model, among the tasks of the audit committee on management appointed within the scope of the board of directors
As the committee for internal control and auditing, from the statutory auditor or comptroller it receives a report on fundamental issues arising in the course of legal review and, in particular, on significant deficiencies found in the internal control system in relation to the financial reporting process (D.Lgs. 39/2010, art 19, paragraph 3)
Summary
The organizational structures of a company, of which the adequacy must be taken care of, evaluated and controlled by the organization bodies, are certainly part of the internal control system, understood as the set of directives, procedures and operational practices defined and adopted by the company to reach, through a proper process of identification, measurement, management and monitoring of the main risks, strategic, operational objectives, of reporting and of compliance. (Bertoli & Perotta, 2013). 2403, in which is specified the duties of the same component of governance, does not mention the internal control system (Allegrini, Greco, 2013) Still, it can be observed in the Civil Code, how the specific reference to the monitoring of the internal control system is not present in the general rules on the board of directors; the only trace in this respect refers to the monistic model, among the tasks of the audit committee on management appointed within the scope of the board of directors. On the second level, it oversees the process of identification, assessment, management and control of the risks of the operation and ensuring coherence with respect to the business objectives and responds to the criteria of segregation which allow an effective monitoring This level is constituted of periodic inspections by the compliance function, of risk management, which by their nature are independent and autonomous;. In the comments in the Code of Corporate Governance of art. 7, it is considered that it is up to each issuer to establish whichever organizational structure is more suitable, in relation to the characteristics of the company, to allow an effective presidium on risks
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
