Internal control aligned with strategy and business requirements

04 januari 2017 5 min. leestijd

Over the past years RGP has developed extensive experience in internal control, serving clients across industries from strategy through implementation.

Internal control is a process for assuring achievement of an organisation's objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies. In broad terms, internal control involves all activities that are geared at controlling risks to an organisation.

Based on RGP’s experience from multiple projects in the field, the international consulting firm (RGP has over 3,200 professionals in 60+ offices globally) has identified a range of challenges which internal control teams typically face:

  • More about documentation than control
  • Poor automated oversight
  • Insufficient business alignment
  • Insufficient team resources
  • Lack of responsibility/accountability
  • Insufficient training/support
  • Internal control acting as internal audit
  • Lack of business commitment
  • Acts to serve as an external audit only
  • Too complicated

Internal Control


Internal control is one of the pillars of the finance function, alongside responsibilities for business support, financial reporting and transaction processing, among others. One of the major pitfalls in internal control is, according to RGP’s view, a lack of consistency of internal control measures, and a misalignment between strategy with objectives and business requirements. This down the line causes inefficiency and ineffectiveness in realising objectives on both control side as business side.

In the ideal approach, internal control starts with defining the overarching contours, derived from the business strategy and related value drivers. Transaction processing and related financial reporting outcomes serve as a requirement to fulfill value creation, effective business operations, reliable and timely financial reporting and compliance. Once implemented, ensuring alignment between internal control with business processes, as well as other financial aspects within the landscape, is key factor to accomplish an effective operation.

An overview of four testimonials (+ key achievements) from RGP’s internal control track record:

Internal Control Track Record

Internal Control Framework Implementation

RGP’s team of consultants helped a corporate with the setup of internal control, in line with a redesigned strategy and an accompanying ERP roll out. RGP:

  • Managed the full business process redesign during the ERP implementation;
  • Ensured the Control Framework was aligned to business processes;
  • Supported the setup of ITGC;
  • Provided training and post-go live support.

Process Design System roll out

RGP supported an international corporate with the integrated setup of different compliance area’s referring to ISO9001/18001, Customs AEO, SOx. RGP:

  • Implemented an integrated process framework serving for all compliance area’s;
  • Trained staff on serving as process coordinator for relevant compliance area;
  • Implemented an automated and fully integrated process tooling;
  • Implemented audit software including workflow to business representatives.

Business requirements redesign

RGP advised a manufacturing firm with managing the setup of internal control, in line with a redesigned strategy and an accompanying ERP roll out. RGP:

  • Alignment of business processes (OTC, PTP, LOG/MFG, Finance);
  • Standardisation of risk and control framework;
  • Optimisation of roles in framework for meeting SOD requirements;
  • Development of automated controls (where possible) in ERP application;
  • Redesign of compensating controls/manual controls;
  • Collaborated through a shoulder to shoulder approach with the client.

PTP & OTC authorisation automation

A multinational manufacturing company with EMEA presence in 15 countries faced issues in efficiency and effectiveness of sales/procurement authorisation. RGP:

  • Supporting client with managing differences between the countries referring to level of automation, business , processes and organisation size;
  • Planned and designed an approach to standardise and align processes;
  • Acted as linking pin between business and technical IT staff;
  • Explained and trained local staff in system solution and process implications.

An article from Mario Cornel, Managing Consultant at RGP in the Netherlands.