29/08/2016

29/08/2016

Assessing And Strengthening Internal Controls

control-427510_640 Internal control, as defined in accounting and auditing, is a process for assuring achievement of a company’s objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies.

Weak internal controls in a business are like an invitation to fraud!

An internal control risk assessment should be undertaken which focuses on determining whether internal controls are working effectively and include an:
  1. assessment of the design and operating efficiency of the internal controls in place,
  2. understanding of the flow of transactions to ensure controls are in place at points of which misstatement could arise,
  3. assessment of controls to prevent and detect fraud.
Improving and reviewing internal controls is an on-going process and self-evaluation is important.

Methods of strengthening your internal controls include:

  1. Identifying risk areas in your business,
  2. Ensuring duties are segregated,
  3. Having adequate physical control of assets,
  4. Correct errors promptly,
  5. Develop written policies and procedures,
  6. Provide adequate training to staff,
  7. Maintain adequate supporting documentation,
  8. Maintain adequate approval of documentation and transactions.

What questions do you have?

We are happy to help. Please post your comment below or call Lisa Byrne, Audit Manager at Cooney Carey, on 01 677 9000. Alternatively, send her an email: lbyrne@cooneycarey.ie 

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