Internal Controls

According to a 2022 report from the Association of Certified Fraud Examiners, it's estimated businesses lose 5% of their revenues each year to fraud. Every business faces risk, but with an effective system of internal control measures in place, that risk can be mitigated. However, as a business owner, your focus is on running your business, managing employees, and turning a profit, not internal controls. 

We have assisted many businesses in creating and reviewing internal control systems to mitigate employee fraud, ensure compliance with regulations, and ensure that company policies and procedures are in place to make business operations efficient and effective.

We identify and document any weaknesses noted during our review of existing internal controls. Then, we test whether the current internal controls are effective. Finally, we offer recommendations in a report of findings that can be used to strengthen your existing internal controls.

• Recommend segregation of duties for implementation by dividing responsibilities so that no single person has control over all aspects of financial transactions.   
• Make sure transactions are authorized through delegating approval authority to an individual only when the transactions are consistent with company policy and funds are available.
• Ensure records are routinely reviewed and reconciled by someone other than the preparer or transactor.
• Ensure that equipment, inventories, cash, and other property are accounted for.
• Physically secure, periodically count, and compared with item descriptions shown on control records.
• Set up proper channels for reporting suspected improprieties.
• Document policies and procedures and make them accessible to employees
• Review operations to determine whether the results are consistent with established goal and objectives and carried out as planned.

Don't let employee fraud be the downfall of your business. If you suspect employee fraud or are concerned your business is at risk, contact us today.