The opportunity for employees to divert financial resources for their own personal gain can occur because of the lack of internal financial controls by the organization. Whether the scheme is simple or complicated, a breakdown in internal controls gives dishonest employees the opening to make their fraudulent move. Top 5 internal controls an organization should consider implementing can include. Check them out…
I. Define and periodical review of assigned authority.
Authorization to handle an organization’s resources such as loan limits, withdrawals, electronic fund transfers, etc. is clearly written through policies and procedures
II. Safeguard negotiable assets.
Most negotiable assets are handled on a daily basis, requiring very tight control procedures. Access to uninsured checks should be controlled and secured by written standards
III. Ensure accurate and timely record keeping of assets.
Physical evidence of all transactions is recorded in the correct amounts, in the period they were executed, and in the appropriate amount.
IV. Segregate duties.
This is critical element of Sarbanes-Oxley, where each task needs to be identified and divided so that different people handle different aspects of recording processing, reconciliation, etc. In short, duties should be structured sot hat no one person has complete responsibility from start to finish.
V. Perform routine valuation of reported balances.
Recorded amount are routinely reviewed and reconciled for impairment in value.
Share other best practices.pursue goals with energy and persistence. Hallmarks: Strong drive to achieve, optimism, even in the face of failure, organizational commitment.
• Empathy – the ability to understand the emotional makeup of other people; skill in treating people according to their emotional reactions. Hallmarks: expertise in building and retaining talent and cross-cultural sensitivity; service to clients and customers.
• Social skills – proficiency in managing relationships and building networks; an ability to find common ground and build rapport. Hallmarks: effectiveness in leading change, persuasiveness, expertise in building and leading teams