Internal controls can best be described as a type of system that is put into place by a business to ensure the integrity of the accounting information meets certain effective targets and then conveys the managerial policies throughout a business. Internal controls will work best when these controls are put into several divisions and deal with the interactions between many business departments. Internal controls are usually all of the systems that are put into place to achieve certain goals for a business. Internal controls do not protect you from law and regulatory compliance, but can protect you and your business from abuse, theft, or fraud. Internal controls systems will need to be monitored so that a business owner or executive o f a business can identify the potential for mistakes in any of the reported information or methods. A CPA can be the professional that you would call on to evaluate your business’s operation to further determine if the right internal controls are in place to protect you and your business from employee theft or abuse. A CPA will go over the effectiveness of your procedures and then make recommendations to help your company become stronger and profitable.
Having a CPA perform an evaluation of your internal controls can bring many advantages to your business. A CPA that is performing a review of your business’s internal controls can implement procedures for certain tasks so that the tasks are divided among different personnel to reduce the risks of errors, that way one person doesn't have total control of any of the financial transactions within your business. Another advantage to having a CPA review your business’s internal controls is they can ensure that financial records are reviewed and reconciled periodically to make sure that all financial transactions are being accurately processed and further ensure that these financial transactions are being authorized by a person who has been delegated as the financial specialist within your business. One last advantage to having a CPA review your business’s internal controls is they can help give employees the right training and guidance to make sure that they have the correct knowledge to be able to carry out their particular job duties and are also aware of the correct way to report any inconsistencies within your business. Contact a local CPA provider in your area to find out how they can you with the internal controls of your business.