Internal Controls and Reporting

Fraud now accounts for $1 in every $8 of crime related costs according to a report by the Australian Institute of Criminology: Counting the costs of crime in Australia: A 2011 estimate.

The top 3 fraud risks for small business are false invoicing, Theft of Cash, payroll overpayments.

Even long term trusted employee’s can have family, gambling or other factors that turn them into a thief. If systems aren’t in place then fraud is can easily go un detected for quite some time. To prevent this we have a 2 part approach. Firstly systems that directly guard against fraud occurring and secondly a reporting framework that will promptly alert the business to unusual activity We can provide an analysis report of your banking, supplier/Payables, payroll, customer/Receivables and Assets/stock.

Reviews

The first step in implementing internal controls is to assess current practices.

We can produce a report highlighting any inefficiencies or potentially risky practices that we identify

Procedures

Once the initial assessment is complete, we can suggest new work flows and procedures which will improve efficiency and reduce the potential for errors or fraud.

These may include checklists, compliance frameworks and establishment of verification control data.

Checks

Even the best structured systems are subject to unforseen actions, just think of the number of security updates that are issued by software companies.

For this reason, it is important to have a set of cross-checks in place which identify when all is not as it should be and further investigation is needed.

We can suggest an appropriate set of automated and/or manual consistency checks based on the previous two stages.