Internal Controls & Employee Fraud Protection Assistance

When your company is struggling with employee fraud and is in desperate need of high-quality internal control systems, we can help. Here’s how:

• Set up the proper channels for reporting suspected instances of fraud
• Analysis of duties and strategies for dividing responsibilities so employees have less control over financial transactions
• Account for business inventory, equipment, cash, and other property or assets
• Monitor authorized and unauthorized transactions
• Document business policies and procedures
• Make your businesses policies and procedures accessible to your employees
• Act as a third party for reviews of your company’s records
• Review your business operations, objectives, and goals
• Analyze your business’ consistency
• Review product information and descriptions to ensure they match those of the control records
• Provide employees with guidance and high-quality job training

Having effective internal control systems in place is essential if you hope to prevent fraud and maintain the integrity of your books. Although your employees are essential to helping your business run and continue to be successful, you must also take steps to ensure regulation compliance and business efficiency.

Our CPAs can review your business records and current internal controls to identify weak points, perform tests to determine the effectiveness of existing internal controls, and make recommendations for strengthening your internal control systems.

Your business needs to be prepared for various types of fraud and similar risks. Without strong internal controls and ongoing support from a high-quality CPA firm, businesses are often at risk of the following:

• Corruption. This occurs in this context when employees use their position to influence business transactions to further their own financial interests. Bribery, conflict of interest, and extortion are a couple of examples of business fraud through corruption.
• Financial statement fraud. If an employee omits or intentionally includes false information on your business’ financial reports, this could have a devastating impact on your company. Financial statement fraud often includes inflating assets or hiding liabilities.
• Asset misappropriation. If your employees have stolen money or other business non-cash assets, or if they have made false expense reimbursement claims, effective internal controls could put a stop to the problem.

Your business could implement several high-quality internal control systems to secure your company’s profits, accounting records, and integrity. Some of the most effective internal control systems include the following:

• Segregation of duties
• Thorough financial record documentation
• Use of multiple signatures

Once you have internal control systems in place, you must also be prepared to monitor them regularly. Systems will need to be updated and revised to remain current with technological advances.

If you do not have strong internal controls in place, your business is at risk for employee fraud. A CPA from our firm can review your business’ current practices and policies, explain your internal control options, and help implement and monitor these programs as needed.