The first article in our two-part series about internal inventory controls focused on methods of storing and managing inventory (i.e., the physical quantities). This second article examines best practices related to inventory costing controls (i.e., the price component). It is equally important to track the accumulated costs associated with remastering inventory to a sellable condition [...]
Much like selling records is an issue for many artists these days, keeping an accurate inventory record is a concern for small businesses. It is just as important to provide customers with what they want as it is to manage inventory levels to avoid overstock and storage costs. Internal inventory controls are intended to help [...]
Our verdict is in: Courts should establish internal controls to help govern their processes. Watch as Jason Harpe describes the types of internal controls that are most relevant to judicial systems of all sizes.
While tracking inventory can be a challenge, internal controls can help simplify that task. Watch as Chad Sexton describes three internal controls that manufacturing and distribution companies can use to facilitate inventory management.
Strong internal controls can keep a company healthy by helping to achieve four key business objectives: Safeguarding assets. The right controls protect a business’ physical and financial assets from fraud, theft, and errors. Likewise, proper controls quickly identify errors and fraud if they occur. One of the most essential concepts related to internal controls (and [...]
Solid internal controls are essential for a healthy business. Before a company can select any controls, management should know which ones best address its challenges. There are three primary types of internal control “medicine” that business owners and managers can use to increase their operational efficiencies. Preventive and Detective Controls A preventive control mitigates the [...]
The simplest way for any business to deter fraud is by implementing internal controls, and the natural starting point is with segregation of duties. It's one of many internal controls that can be applied with minimal time and cost. Watch Lorri Kidder discuss segregation of duties and other internal controls that every business [...]
In our last issue, we discussed the definition of internal controls over financial reporting (ICFR) and detailed the benefits of using balance sheet reconciliations; here, we describe management review internal controls (or supervisory review internal controls), as well as tips to improve their effectiveness. The goal in this internal controls series is to provide ideas to help [...]
Are you looking for ways to safeguard your company’s assets? What about making sure your financial statements are accurate, or that you’ve complied with regulatory requirements? By focusing on internal controls over Financial Reporting (ICFR), small to medium-sized businesses can enhance the integrity of their financial records by regularly performing cost-effective internal controls that lessen [...]
Recently, I was contacted by a company whose trusted internal accountant had embezzled funds. I am often amazed at an owner’s surprise when a trusted employee has stolen—especially when the employee had been given full access to everything with absolutely no oversight (i.e. anti-fraud internal controls). The true question might be: why not steal? Self-restraint [...]
Auditors are required to evaluate internal controls’ ability to both prevent and detect financial misstatement—and if those controls allow the misstatements to be corrected within a reasonable amount of time. Plus, management letters must identify two types of shortcomings within internal controls as determined during the financial statement audit. 1. Material Weaknesses These refer to “a [...]
By “SOX,” we don’t mean the body of a puppet. Instead, we are referring to the Sarbanes-Oxley Act (SOX). SOX mandates that public companies establish specific reporting and financial control measures to protect their shareholders. Although SOX compliance is targeted primarily at public companies, it can also benefit private companies that embrace its policies. The [...]