Internal control systems within the framework of the 8th EU directive

Master's Thesis from the year 2010 in the subject Business economics - Business Management Corporate Governance grade: 10 Anglia Ruskin University language: English abstract: This dissertation evaluates the significance of Internal Control Systems (ICS) within the framework of the 8th EU Directive. The author analyses the advantages disadvantages as well as impending conflicts and limits regarding the implementation process of an ICS in the regulatory environment of the EU. Possible theoretical implementation guidelines are elaborated on the basis oftwo commonly known frameworks for internal control namely 1) the COSO Framework which considers the general design of an ICS except for detailed results of IT-based internal controls and 2) the COBIT Framework which provides details for the IT processes and their proposed controls.In addition the author analyses the findings of a survey in which 27 internal control specialists auditors and internal control consultants participated. The results of the survey reveal that companies face a number of problems and challenges when aiming to implement and maintain an effective ICS. Similar to the findings in literature the survey sample name the effort resources costs and maintenance as well as the acceptance awareness communication design and complexity as the main challenges and problems an Internal Control System is confronted with. On the basis of the survey resultsthe author provides insights into determining an ICS' actual state as well as its target state.Finally the author of this dissertation proposes establishing an ICS project in order to create awareness for ICS to structure the ICS process transparently and within an appropriate time frame. Furthermore the usage of checklists and frameworks facilitates the implementation process of an ICS. It is recommended to use the COSO and COBIT Framework.