As a business owner, you understand the importance of fostering an environment of reliable internal controls within the accounting cycle. The opportunity for fraud, defalcation, or the misappropriation of assets can exist when there is a limited number of individuals (or only one individual) involved in recording transactions, authorizing transactions, and maintaining custody of cash. At times it is beneficial to evaluate and grow the internal control environment within your business.
What we do for you…
- Implement segregation of duties so that duties are divided—or segregated—among different individuals to reduce risk of error or inappropriate actions. No single person has control over all aspects of any financial transaction.
- Make sure transactions are authorized by an individual with approval authority who can ensure that transactions are consistent with policy and funds are available.
- Ensure records are routinely reviewed and reconciled by someone other than the preparer or transactor, to determine that transactions have been appropriately processed.
- Confirm that equipment, inventories, cash, and other property are secured physically, counted periodically, and compared with item descriptions reflected on control records.
- Provide employees with appropriate training and guidance to ensure they have the knowledge necessary to carry out their job duties, are provided with an appropriate level of direction and supervision, and are aware of the proper channels for reporting suspected improprieties.
- Document policies and procedures and have them accessible to employees. The documented policies and procedures provide day-to-day guidance to your staff and the continuation of duties in the event of prolonged employee absences or turnover.
- Review operations to ascertain whether results are consistent with established objectives and goals and whether the operations are being carried out as intended.