Internal controls are designed to protect an organisation from loss or misuse of its assets.
Internal controls also ensure that all transactions are properly authorised and the information contained in financial reports is reliable.
Too often not-for-profit organisations rely on trust rather than effective internal control frameworks which frequently leads to misunderstandings, errors, breakdown in relationships and sometimes misappropriations and frauds. An effective internal control framework is the foundation for protecting both the organisation and staff.
Preventative and detective controls
Ideally an organisation will have a series of preventive controls and detective controls in place. Some key preventative controls are dual cheque signatories, review of invoices prior to payment and segregation of incompatible duties among employees. For example, it is inappropriate for the person who performs the banking to also perform the bank reconciliation.
In some organisations there are circumstances where preventative controls are not only impractical, but in some cases impossible. Is there an answer to ensure your organisation still has adequate control? Yes!
Saward Dawson services
Our audit and assurance team place an emphasis on systems, risk exposure, accounting policies and governance issues.
We have extensive experience in evaluating risks and identifying controls that can mitigate these risks.
Please consider whether we may be able to assist your organisation with a review of your control framework.
We can perform the following work surrounding controls:
|Identify risks and controls currently in place.|
|Determine the efficiencies of the current control structure, both strengths and weaknesses.|
|Recommend controls to implement|