Internal controls over financial reporting (ICOFR)

Why it matters

In the Natural Resources & Energy sector, organisations operate in complex environments marked by large capital investments, joint ventures, and strict compliance requirements. Maintaining accurate and reliable financial reporting is essential not only for audit readiness and investor trust but also for regulatory compliance and operational accountability.

At BDO UAE, we help companies design, implement, and sustain practical ICOFR (Internal Controls Over Financial Reporting) frameworks. Whether you are subject to SOX, IFRS, local financial reporting rules, or joint venture requirements, our solutions reduce financial reporting risks, strengthen governance, and build long-term control resilience.

What we do

We provide end-to-end support to assess, build, and optimise your internal controls over financial reporting.

• ICOFR framework development - Define and implement control frameworks, from process scoping and risk identification to documentation, testing, and roll-out.
• Risk control matrix (RCM) design - Map key processes, identify risks, and design controls using detailed narratives and process flowcharts.
• Testing of design and effectiveness - Conduct Test of Design (TOD) and Test of Operating Effectiveness (TOE) to validate the adequacy and reliability of controls.
• Gap analysis and remediation planning - Highlight control weaknesses and support remediation with realistic action plans and timelines.
• Control rationalisation and automation - Streamline and optimise controls, eliminate redundancies, and support automation where feasible.
• ERP system integration - Align controls with platforms such as SAP, Oracle, or custom ERPs to ensure traceability and audit readiness.
• Monitoring and refresh cycles - Support continuous improvement, change impact assessments, and annual updates to reflect changes in operations and regulations.

Sectors we support

We work with leading companies across energy-intensive and highly regulated sectors, including:

• Oil & Gas – Upstream to downstream operations
• Energy and Utilities – Power generation and distribution
• Petrochemicals – Process-driven financial and control environments
• Metals & Mining – Capital-intensive, multi-location control environments

Our approach

• Multidisciplinary teams – We combine financial reporting specialists, internal auditors, and engineers for holistic insight.
• Process-integrated solutions – Our controls are designed around your real operations, not just theory.
• Collaboration-led execution – We engage closely with process owners to ensure ownership, alignment, and practicality.
• Data-driven validation – We base findings on robust testing, control walkthroughs, and real-time documentation.
• Regulatory alignment – Our frameworks meet SOX, IFC, IFRS, and local audit requirements in the UAE and GCC.

What you gain

• Audit readiness – Clean, well-documented controls that stand up to external audit scrutiny
• Risk mitigation – Early identification and resolution of financial reporting risks
• Improved accuracy – Strengthened confidence in financial statements and disclosures
• Efficiency and standardisation – Elimination of redundant controls and harmonisation across departments
• ERP control integration – Assurance that financial systems support consistent control execution
• Sustainable compliance – Ongoing control relevance aligned with business and regulatory change

Let’s work together

Whether you are designing your first ICOFR framework or enhancing an existing one, BDO UAE brings the technical expertise, business understanding, and regulatory insight you need to embed trust into your financial reporting processes.