What NEDs should be asking about upcoming corporate reform

There is no better time for non-executive directors (NEDs) to work with their executive team to agree the required level of assurance over internal controls and consider the questions below. 

Questions for NEDs to ask themselves:

1. Has the business briefed you on the ongoing current landscape of internal control and fraud reforms and how they are responding and reacting?
2. To what extent do you understand the proposed internal control and fraud frameworks within the organisation and the approach taken to determine the effectiveness of the control environment?
3. To what extent is your organisation considering its future ambitions over its control landscape including non-financial metrics?

Questions for NEDs to ask their executive team:

1. Can the business identify or effectively demonstrate both the internal control and fraud gaps when comparing the business’s current state compared to the BEIS recommendations?
   
2. Has management developed a plan to enhance the business’s control framework and understand where the plan could be ‘dialled up’ or ‘dialled down’ depending on the final BEIS outcome?
3. Has management considered what the future attestation will look like and how this will be achieved?  

Asking these questions now will help NEDs prepare themselves and their organisation for the Government’s final proposals.

Are you ready to take the first step towards improving your control environment?

Improving your company’s control and fraud frameworks is not just about compliance, it can also generate significant value for the organisation by increasing investor confidence and improving efficiency.