Internal control systems – ICS Barometer 2022
07 December, 2022
The companies surveyed by PwC are already looking closely at their internal control systems. The most important added value of an internal control system is compliance with regulatory requirements. In addition, internal control systems are important and very useful tools for further developing companies’ internal structures.
The most important tasks for the future are the implementation of legal requirements (e.g. FISG, EU Taxonomy and CSRD), as well as the digitalisation and standardisation of internal control systems (ICS).
How companies respond effectively to increasing risks
Respondents rate the level of ICS awareness in their organisations as high on average (5.23 out of 8). Due to increased regulatory requirements, we expect this value to increase (significantly) in the future. Around seven out of ten respondents (71.2%) consider digitalisation and the standardisation as well as simplification of their company's internal control systems to be key challenges for the future.
At the same time, they are rather sceptical about the maturity level of the internal controls of non-financial data in their companies. They only rate this at 3.46 on a scale of 0 to 8. This could also be due to the fact that it is often still unclear to respondents which non-financial data they should collect and subsequently control.
“In view of recent regulatory changes, such as the EU Taxonomy, essentially every company needs to adapt its internal control system. When it comes to what exactly these changes should look like, external support can be useful.”
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