Italian law 262 of December 28, 2005 for the protection of savings and regulation of the financial markets (“Disposizioni per la tutela del risparmio e la disciplina dei mercati finaziari”) is part of a broad set of measures aimed at guaranteeing the stability of the financial markets and protecting investors.
Among other things, as part of the corporate governance of listed companies this law introduces the requirement of a position with responsibility for financial reporting in charge of ensuring the preparation of all company accounts.
This provision emphasizes the importance of planning and implementing adequate controls relating to the process of producing company data, especially all activities relating to preparation of the company’s financial statements and—if applicable—consolidated financial statements.
In particular, it requires the establishment of an internal control system for financial reporting in accordance with international best practice and PCAOB publications relating to projects based around the requirements of the Sarbanes-Oxley Act (SOA). Financial reporting is seen as “a process involving various company bodies and organizational levels that is designed to guarantee reliable administrative and financial reporting and the preparation of company accounts in accordance with binding accounting principles.”
ARIS Solution for Governance, Risk and Compliance Management (ARIS GRC) helps companies to create sophisticated Internal Control Systems that cover all regulatory requirements. Supported by mapped processes that include risks and controls, ARIS GRC ensures the effectiveness of the implemented internal control system.
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