Who Is In Control of Your Internal Controls?

We live in an era where electronic commerce is dominating our workplace. The stories of missing inventory, large credit memos, duplicate invoices, incorrect bank reconciliations and improper accounting entries continue to mount. Every now and then, we even hear about a direct deposit being made to a fictitious employee. And all too often, we don’t hear from our clients until several months after the fraudulent activity has occurred.

Many times, an organization’s internal controls have not been updated to ensure that electronic transactions are properly being documented, approved and recorded in the financial records.

When was the last time you reviewed the controls over your hardware and software systems? Are transactions being properly processed by your IT systems? Does your bookkeeper have access to the signature stamp?

Our goal is to help business owners be proactive and take control of the internal control within their organizations. We can perform a thorough review of your internal control policies and procedures and help identify areas in your organization where improper checks and balances may lead fraudulent activity. In addition, we will make recommendations that could help you deter fraud. If you are ready to take control of your internal control, please contact a Rea professional.

This article was originally published in Illuminations: Facts & Figures from people with a brighter way, a Rea & Associates enewsletter, 10/10/07.

Note: This content is accurate as of the date published above and is subject to change. Please seek professional advice before acting on any matter contained in this article.