Internal Controls Over Financial Reporting (ICFR)
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?
ADEPTS’ 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
frequently asked questions
A material weakness is a deficiency in internal controls that creates a reasonable possibility of a material misstatement in the financial statements. It’s often identified through failed control testing or significant audit findings.
ICFR ensures that financial processes affecting tax computations are controlled and documented, which helps reduce risks of errors or omissions and supports transparent, accurate disclosures.
Yes, the Abu Dhabi Accountability Authority (ADAA) Law No.1 of 2017 and Resolution No.88 of 2021 require public interest entities and government-linked companies to establish and report on ICFR.
ICFR focuses specifically on controls to prevent material misstatements in financial reporting. Fraud risk controls have a broader scope, covering prevention and detection of fraud in both financial and operational processes.
Management should use defined sampling methods and documentation protocols to evaluate whether controls are well-designed and operating effectively, typically through periodic testing.
Key processes include taxation, investment management, revenue recognition, fixed asset inventory, financial closing and reporting, and treasury operations.
Absolutely. Effective ICFR includes embedding control points within ERP workflows and audit trails to ensure seamless monitoring and compliance.
Organizations must maintain process flowcharts, risk and control matrices, test results, remediation logs, and evidence of ongoing control assessments.
While management holds ultimate responsibility, the CFO typically leads ICFR efforts, supported by internal audit, risk management, and external consultants such as ADEPTS.
ADEPTS offers end-to-end support including framework design, control testing, gap analysis, remediation, and audit readiness—ensuring your controls meet regulatory requirements and business objectives.
Our deep regulatory knowledge, combined with practical, business-aligned solutions, ensures your controls aren’t just compliant—they’re resilient and scalable. Whether you’re preparing for regulatory assurance or enhancing governance frameworks, ADEPTS provides trusted, end-to-end icfr services UAE.
Are you ready to elevate your financial reporting controls to meet UAE’s stringent requirements? Contact ADEPTS to discuss how we can support your compliance and assurance objectives.
Why Choose ADEPTS
