As technology improves, so do cyberattack efforts. According to the Federal Bureau of Investigation’s Internet Crime Complaint Center (IC3), “Since January 2015, there has been a 1,300 percent increase in identified exposed losses, now totaling over $3 billion.” This makes prevention and detection more difficult for businesses.
Although difficult, having strong internal controls is important. Businesses need strong internal controls to detect and prevent both intentional and unintentional misappropriations of assets.
At CoNexusCPA Group, we not only assess current internal controls, we also design and implement new internal control procedures.
The internal control requirements we highlight are:
- Segregation of Duties to ensure that no one person has too much control over transactions and the reporting of those transactions.
- Oversight to make sure proper authorizations and reviews are required and applied consistently when assets are acquired, transferred and recorded.
- Physical Security to ensure that cash, equipment, inventories and other assets are secured physically, counted and reconciled to records periodically, and compared with item descriptions on control records.
- Training to provide employees with adequate training and guidance to ensure they have the knowledge necessary to carry out their job duties, the appropriate level of direction and supervision, and are aware of the proper channels for reporting suspected improprieties.
- Documentation to create policies and procedures on day-to-day operations that are accessible to employees. Well-documented controls keep operations running smoothly and securely during employee absences and transitions.
A comprehensive internal controls assessment can help identify problem areas such as: segregation of duties, security weaknesses, and operating and accounting procedures. Contact a specialist at Conexus CPA Group to have your existing internal controls assessed and strengthened to protect your company.