At times you may need a trained professional to evaluate your entities’ internal controls surrounding financial reporting.
Internal control is an integrated process that encompasses five components: risk assessment, control environment, control activities, information and communication, and monitoring. At Thompson Greenspon, we can assist management by documenting the existing controls and can perform procedures to test whether your current internal controls are operating effectively. We will provide a report listing our findings and any recommendations for changes to the design of the internal controls. Our services assist management in their assessment of the design and effectiveness of their internal control system specific to their business activities and circumstances.
Effective Internal Control Systems Should:
- Implement segregation of duties so that duties are divided, or segregated, among different people to reduce risk of error or inappropriate actions. No one person should have control over all aspects of any financial transaction.
- Make sure transactions are authorized by a person delegated approval authority when the 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 properly processed.
- Make certain that equipment, inventories, cash and other property are secured physically, counted periodically, and compared with item descriptions shown 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 make them accessible to employees. The documented policies and procedures provide day-to-day guidance to your staff and 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 planned.
“I have been working with Thompson Greenspon for 15 years and have always been responded to quickly and professionally. They have never let me miss a deadline.”
– Karin J.