Specialized Internal Control (VIC)

Increasing importance of internal control

The attention for the special internal controls within the decentralized government (provinces, municipalities, water boards and joint schemes) is increasing, partly due to the advent of legitimacy accounting. This involves the organization itself arriving at an account of legality, which then becomes part of the external auditor's fairness opinion.

The VIC: a structured approach

When performing VIC checks, it is essential to follow a structured approach. The process begins with mapping all financial flows within the organization, both incoming and outgoing. Next, a detailed risk analysis is performed to identify and evaluate potential risks and vulnerabilities.

Based on this analysis, specific control measures are developed and documented so that they are clear and enforceable. These measures are then implemented within the organization. This may involve training staff, modifying processes and systems, and setting up monitoring mechanisms.

The planned checks are carried out in accordance with the established procedures and guidelines. Findings and any deviations are carefully documented. After the checks have been carried out, the results are evaluated and reported to management, identifying areas for improvement and drawing up an action plan to address them.

Finally, it is important to continuously improve the VIC process by regularly reviewing the risk analysis and control measures and adapting them to changing circumstances and new insights. An example of a province's VIC plan can be found here.

Rising demand for VIC experts

As a result, the demand for good VIC experts is rising significantly. And that while the overall demand for auditors has also increased in recent years, in virtually all sectors. This presents decentralized governments with the challenge of continuously having VIC capacity and expertise in order.

Our solutions for your VIC needs

With ARC People, you can go in different directions depending on your needs:

• Should temporary expertise and/or capacity be required, know that our ARC Interim Desk is accustomed to acting quickly and competently. Within three days, you will be presented with two suitable auditors/consultants from which you can make a final choice.
• You can strengthen the function from the bottom up with talented auditors from our traineeship.
• Our experts can advise you on a more data-driven approach to VIC controls, through data analysis and process mining, for example.

Proactive approach and advanced techniques

At ARC People, we believe in a proactive approach to internal control. By using advanced techniques such as data analysis and process mining, we can detect patterns and anomalies in your data that would otherwise go unnoticed. This allows you to intervene and take corrective action in a timely manner, increasing the reliability of your internal controls.