While we never aim to scare our clients and readers, we have a huge plethora of war stories about what happens when companies don’t have internal controls. Just in my 18+ years of experience, I’ve compiled all the crazy stories for you today. What Happens When Companies Don’t Have Internal Controls So, what happens when
Category: Internal Controls
See Also: Accounting Depreciation Account Reconciliation Cash Flow Projections How to Develop a Daily Cash Report Future of the Accounting Workforce Accounting Fraud Prevention A small business owner typically cannot afford to hire enough people to have proper separation of duties to gain the internal controls needed to prevent accounting fraud. Using Internal Control and
We hear about the Silo effect in companies all the time. Silos are formed in the large public companies as well as in small private companies. These organizational Silos can impact the profit potential of an organization because each department or silo is kept separate from one another. In this blog, we’re looking at the Silo
Businesses lose millions (if not billions) of dollars due to fraud. But how do so many cases of fraud go unnoticed until the damage is done? Often, it’s because businesses don’t recognize the red flags of fraud soon enough. Working with many entrepreneurs and their companies for the past 25+ years, I have unfortunately have
Does this sound like your business lately? Sales volume is down. Cash is tight. The company is losing money. And just when you think things can’t possibly get any worse, you discover that one of your employees has committed fraud… Sadly, this scenario is all too common and begs the question of whether fraud is
Whether in response to low oil prices or simply in an effort to run leaner, companies across the globe are cutting jobs. Last week, Chevron announced that it plans to lay off roughly 10% of its workforce, roughly 6000 to 7000 workers, in 2016 to deal with the plunge in crude prices. Deutsche Bank recently
Unfortunately, companies of all sizes can become victims of fraud. In fact, a study on fraud published by accounting firm KPMG International found “a very large increase in cases involving the exploitation of weak internal controls by fraudsters up from 49 percent in 2007 to 74 percent in 2011.” Thus, internal controls are a first
See Also: The Fraud Triangle Larceny (fraud) Auditor Audit Scope Compliance Audit Skimming Fraud Definition Skimming fraud is the theft of cash from a business prior to its entry into the accounting system for that company. Although skimming is one of the smallest frauds that can occur, they are also the most difficult to detect.
See Also: New York Stock Exchange (NYSE) Generally Accepted Accounting Principles (GAAP) American Institute of Certified Public Accountants – AICPA Financial Accounting Standards Board (FASB) Full Disclosure Principle Corporate Veil Investment Banks Treasury Stock Accounting Fraud Targeted Securities and Exchange Commission (SEC) Definition The Securities and Exchange Commission (SEC) is a U.S. government agency that
Separation of Duties Definition Some circles refer to separation of duties as segregation of duties. It refers to a concept that leads to greater internal control within a company. The accounting separation of duties definition is a theory that the job of an employee should provide a reasonable evaluation for the job of another employee. In
See Also: Securities Act of 1933 Securities Exchange Act of 1934 Audit Committee Auditor American Institute of Certified Public Accountants – AICPA Sarbanes Oxley Act of 2002 The Sarbanes Oxley Act of 2002 or SOX for short is further regulation of the secondary market by requiring further internal controls within companies and extensive audit practices.
See Also: Account Reconciliation Accounting Controls Transfer Risk Commission Accounting Certified Public Accountant (CPA) Open Account Definition The open account definition is an account which remains to be paid. Open account is also known as an account payable by the bearer. Their terms exist in a multitude of situations: trade credit which is not fully paid,