Internal Controls Over Financial Reporting (ICOFR)

Understanding Internal Controls Over Financial Reporting

In today’s complex regulatory environment, internal controls over financial reporting remain a cornerstone for safeguarding financial integrity. With stakeholders and regulators increasingly scrutinizing disclosures, companies must ensure their reporting is both accurate and reliable. How confident are you that your controls effectively mitigate risks related to material misstatements?

In the UAE, compliance with frameworks like the Abu Dhabi Accountability Authority (ADAA) Law No.1 of 2017, Resolution No.88 of 2021, and the UAE Securities and Commodities Authority (SCA) regulations makes effective ICFR services not just best practice, but a regulatory necessity.

Why Internal Controls Over Financial Reporting is Essential

Material misstatements—whether from error or fraud—pose significant risks. Embedding strong, testable controls within financial processes is the best defense. Are your controls designed to adapt to evolving risks and regulatory expectations?

Alberts’ expertise in ICFR ensures financial controls not only help safeguard against material misstatements but are also aligned with your operational realities.

Who Benefits from Internal Controls Over Financial Reporting

Our services are designed for:

Public entities and private entities that are planning for IPO readiness
Government-linked organizations coming under the Abu Dhabi Accountability Authority (ADAA)
UAE Securities and Commodities Authority (SCA) listed companies
CFOs, compliance officers, and internal audit leaders managing financial governance

Our Approach to Internal Controls Over Financial Reporting

Leveraging global standards such as COSO 2013: Internal Control Framework, we tailor our approach for UAE-specific requirements. Starting with a diagnostic assessment, we scope, design, test, and remediate controls systematically.

How confident are you that your current ICFR framework addresses all critical financial processes effectively?

Key Components of Internal Controls Over Financial Reporting Offers

ICFR Framework Development

ICFR scoping, testing, and reporting methodologies, process flowcharts, risk control matrices, test of controls design and effectiveness, plus sampling approaches for management testing.

ICFR Scoping & Planning

Materiality levels using preferred benchmarks aligned to your operating model, identifying significant accounts and processes for review.

Entity-Level Controls (ELC) Review

Assessment of organizational tone at the top through ELCs, setting reliance on the control environment and related activities.

Information Technology Controls Review

Evaluation of IT General Controls for operating platforms and IT Application Controls covering access, availability, and accuracy of data impacting financial statements.

Business Process Controls Review

Evaluation of manual and automated controls in key processes, identifying gaps and developing remediation plans for significant deficiencies or material weaknesses.

Benefits of Implementing Internal Controls Over Financial Reporting

Enhanced accuracy and reliability in financial reporting compliance of UAE
Increased confidence from regulators, auditors, and investors
Early detection and resolution of control deficiencies
Strengthened governance and risk management frameworks
Seamless integration with ERP systems like SAP and Oracle
Compliance readiness for ADAA and SCA assurance

Deliverables You Can Expect

Customized ICFR frameworks aligned with UAE regulations
Risk and control matrices mapping financial processes
Test results on control design and operating effectiveness
Gap analysis and actionable remediation plans
Guidance on ongoing control monitoring and documentation
Audit-ready documentation for statutory assurance