Wirksame Interne Kontrollsysteme (IKS)

Triggered by financial scandals such as those involving Enron and Parmalat, a wave of reforms in regulations and directives was initiated at the EU level to harmonize international accounting within the EU. This includes not only making annual financial statements comparable but also aims to strengthen investors' trust in the market and the companies operating within it. The eighth EU directive, also known as the Audit Directive, specifically requires companies of public interest to establish an Audit Committee and systematically control all corporate processes (internal control system) in light of this objective. When embedding such a system into the corporate structure, certain substantive conditions of the eighth EU directive must be taken into account. Companies face these challenges during implementation.