Internal accounting controls are vital to every business.
The boutique owner needs to be sure that all products are rung up and that all cash is deposited in the bank. The salon and spa owner needs controls to make sure that all services and products sold are captured.
Proper internal controls should be part of everyday procedures in a business. They should work in a way that helps prevent fraud and theft or detects them early.
Having an audit or review of your financial statements once a year will not necessarily detect fraud.
Every business should be sure it has set up an adequate system to safeguard all its assets- cash, inventory, equipment, etc.- with periodic reviews to be sure the controls are working.
Use the following checklist to review your internal control procedures. The list is not all-inclusive and is no substitute for a thorough internal control analysis.
Search Topic: Fraud and Internal Controls