Are you looking for ways to prevent fraud in accounting? Do you need to update your fraud prevention and detection policy? An internal controls audit is a great place to start to ensure the processes and systems in place are supporting your organisational objectives. Brown Auditing Services helps businesses in New South Wales maximise the role of internal controls in preventing and detecting fraudulent activities. Here, we discuss various types of fraud and how internal controls help to mitigate risks.
Unveiling Internal Controls
The term ‘internal control’ describes the processes, systems and activities used to improve decision-making, maintain compliance and reach company objectives. There are many examples of internal controls, such as segregated duties, physical environments, reconciliations, policies, procedures and information processing checks. All of these are proven ways to prevent fraud in accounting by ensuring reliable financial reporting and efficient operations.
To achieve success with internal controls, it’s important to keep in mind that these activities should be performed simultaneously to achieve the highest level of financial and fraud protection. Internal controls are designed to work together in a larger system for effective and secure operations across a variety of industries. All businesses, from sporting clubs to aged care, can benefit from implementing internal controls to safeguard your finances and reputations.
Internal Controls to Prevent Fraud
With cybercriminals becoming increasingly brazen in their attacks on organisations, traditional fraud methods aren’t the only risk to modern businesses. Now, it can take just one wrong click to lose thousands of dollars. This is why internal controls need to be a top priority for fraud prevention. To ensure successful fraud prevention, organisations need a system of internal controls, plus a carefully designed control environment, risk assessment, control activities, communication and monitoring activities. The combination of these components enhances protection across multiple areas of the business to safeguard against both internal and external fraud.
Technology and Internal Controls
In today’s digital world, real-life examples of internal controls rely heavily on technology to increase protection and make fraud prevention more reliable. Through collaboration with internal control experts, you can set your organisation up for success with the design, implementation and monitoring of these systems. Regular risk assessment is important to identify where software and cybersecurity measures can be improved throughout all departments. Transaction reviews and financial tracking is made much easier with upgraded technology, too.
To ensure the best results with internal controls, make sure your business establishes monitoring activities, such as frequent evaluations, to see where processes are meeting or falling short of industry standards. Remember that any process involving people runs the risk of human error, which is why routine checks of internal controls are especially valuable.
Arrange an Internal Controls Audit in NSW
Now that you know more about internal controls to prevent fraud, it’s time to schedule an audit with a reputable audit and assurance team. At Brown Auditing Services, our internal control experts can review your current policies and procedures to improve your fraud prevention and detection policy. Contact us online today for a no-obligation quote and to discuss internal controls that will work for your organisation.