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The National Council of Austria has transcribed the 8th European Directive into national legislation. The resolution was passed and adopted as the Austrian Corporate Law Amendment Act 2008 (Unternehmensrechtsänderungsgesetz 2008-URÄG) on April 10, 2008. Multiple accounting scandals in Europe and the USA gave rise to the development of the EU Directive and the need for more transparency in financial reporting. The focus was also on monitoring the internal control system (ICS), risk management, and the audit system.

Changes to the Austrian Stock Corporation Act (Aktiengesetz-AktG) and the Austrian Limited Liability Company Act (Gesetz über Gesellschaften mit beschränkter Haftung-GmbHG) relating to risk management are particularly important for businesses. The audit committee to be established under this legislation is tasked with monitoring and controlling the financial accounting process and is also responsible for ensuring the effectiveness of the internal control system, i.e.,the risk management and internal audit systems.

The committee’s main task is to manage and monitor all data relevant to internal control. This requires implementation of an executable and effective internal control system and documentation of all essential features.

ARIS Solution for Governance, Risk & Compliance Management (ARIS GRC) helps the committee to deliver an effective internal control system with an integrated workflow system to inform the relevant staff and monitor the implemented controls, processes, and risks via a dashboard.

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Tags: LoungeTalk GRC