Internal controls play an essential role in compliance, management and financial fraud detection for businesses. By ensuring ongoing reliability in financial reporting and organisational processes, you can better meet your long-term objectives and minimise the risk of mismanagement, fraud and theft.

Brown Auditing Services provides audit and compliance risk assessment solutions to businesses in a range of industries across New South Wales. Here, we unpack the meaning of internal controls and their importance.

Types of Internal Controls

While policies and procedures vary depending on whether you’re a private company, public company or non-profit, internal controls typically include:

  • Control environment – Company policies, duties, authority structure, philosophy and management style. Different risks can arise based on how responsibility and authority is assigned, as well as the values and competence of decision makers and responsible staff members.
  • Risk assessment – Specific methods of identifying and managing internal risks. This could include regular internal reviews or meetings as well as assigning someone or a team to assess risks on an ongoing basis.
  • Control activities – Specific policies and procedures that help manage risks across various business operations. This can include approvals, authorisations, security, multi-factor authentication, verifications, reconciliations, purchasing limits and segregation of duties.
  • Information and communication – The ways in which financial information is communicated and recorded. This includes financial reporting as well as how individuals and teams communicate within the organisation.
  • Monitoring mechanisms – Periodic monitoring of internal controls to ensure ongoing effectiveness. This includes regular audits, assessments and recommendations from experts.

Financial internal controls are ultimately designed to ensure efficiency, compliance, financial security and accountability within an organisation.

A Reliable, Ongoing Financial Health Check

Internal controls play a critical role as an ongoing financial health check, ensuring assets are protected and all financial reporting is accurate. Designed correctly, any unauthorised transactions or security breaches are immediately flagged so they can be promptly addressed. Ensuring the accuracy of financial reporting also facilitates better short and long term decision making. Managers, directors and business leaders can access up-to-date information on the financial position of the business.

Benefits of Internal Controls Assessment

An internal controls assessment carried out by an audit professional can improve compliance, risk assessment and organisational efficiencies. By identifying weaknesses or gaps in existing controls, your business can better manage internal risks, improve financial fraud detection and identify any errors and irregularities.

Following a thorough assessment, an audit professional can provide specific recommendations to improve your internal controls. This includes implementing new systems and technologies and updating organisational policies and record keeping procedures.

Our Compliance Management Solutions

Brown Auditing Services has extensive experience reviewing internal controls and making recommendations for improvements. Our experience spans businesses and organisations of all sizes across a variety of industries, from aged care to sporting clubs and SMEs. We tailor our approach every time ensuring ,we deliver solutions suitable to your specific environment, challenges and requirements.

Internal Control Assessments in New South Wales

For assistance with auditing, internal control reviews and compliance risk assessment services in NSW, book a no obligation consultation with the team at Brown Auditing Services. Call 0428 661 200 or contact us online.