Internal control and risk management with the licencing and testing department

Abstract

The objective of this long essay is to highlight the operational risks at the Licencing and Testing Department in Gozo. In the first part of this research, Internal Controls and Risk Management are reviewed, pointing out how having good and appropriate controls in place, efficiency, compliance and good policies are reflected, thus minimizing risk of fraud and abuse. Having a good process of both risk management and internal control, is the key to have good corporate governance. Following this, the basic principles of corporate governance are reviewed and how it ensures public accountability and promotes responsive and accountable institutions. In the third part of the paper one finds listed in detail each task that is carried out in the Licencing and Testing Department and the importance of doing a risk register in every department, where all the risks are clearly listed and also any mitigation measures to be taken to minimize such risks. A risk register regarding the Licencing and Testing Department has been prepared and attached together with this long essay. Following this in the third part of the long essay is a review of the COSO framework - an integral part of lnternal Control, with speial focus on the Control Environment, Control Activities, Information and Communication, and Monitoring within each department. From my findings, the differences between the offices in Malta and the one addressed in this long essay emerged, in particular the fact that the offices in Malta fall under the Transport Malta entity, whilst the office in Gozo falls under the Ministry for Gozo, hence pointing out that this can be sorted ifthe Licencing and Testing Department becomes part of the Transport Malta entity so that all grades and responsibilities can be realigned.