Internal Controls And Risk Management

The right internal controls are critical to every business and are designed to prevent and detect errors or fraudulent activities, safeguard assets, ensure financial information is accurate and reliable, and assist in the achievement of business objectives. Failure of a preventative or detective control or a poorly designed control can lead to major business risk.

The corporate failure in recent times has led to the need of detection of unethical behaviors. The need for investigative services within the business entities needs to be dealt with. The employees of the company will not have the skills required to investigate the management and therefore, the need for accounting “watchdogs” has become a big issue.

We provide services to business entities so that they can achieve the business goals by considering the following objectives:

Operations objectives

Effectiveness and efficiency of the operations which may result in achievement of financial performance goals and safeguard of loss of assets.

Reporting objectives

Implementation of right external and internal financial and non-financial reporting including the elimination of issues of transparency, reliability and timeliness of reporting as set forth by the regulators.

Compliance objectives

Adherence to laws and regulations to which the entity is subject.

What we Do

To gain assurance on the strength of internal controls, we review the following components that can have a pervasive effect on a business. They are:

  • Control environment
  • Risk assessment
  • Control activities
  • Information and communication
  • Monitoring

Our program considers several key areas, among them are:

  • Establish appropriate roles and responsibilities
  • Develop sound system of risk management and control
  • Establish code of conduct and ethical standards
  • Establish job structure and job descriptions
  • Charters of board of directors
  • Code of conduct
  • Delegation of authority matrix
  • Operational policies and procedure manuals

Further, we focus on the following areas:

Structural assessment

We assess the structure of internal controls system of business entities by way of our structured methodologies and highlight areas for improvements through interview and review of documentation. In this regard, we document, as needed, the existing system of internal controls. Following our assessment, we assist business entities to implement our recommendations. Further, we offer business entities to design and implement a new internal control system from the scratch.

Internal control design and review

We assist business entities in analyzing, documenting, designing and reviewing internal controls for all of the operations. It is important for organizations to analyze their business needs and select internal controls that will limit the potential for fraud. This can be particularly beneficial in the event of a new system implementation, a re-organization or re-structuring or the need to review internal control design to develop efficiencies for cost cutting or staff reduction needs.