Generally, when executives are discussing the company’s internal safeguards, they look to controls within the accounting department such as segregation of duties, dual check signors and purchase order matching. But what about safeguards within the information technology environment? As the role of IT continues to grow in the business world, your company should continue to …
In today’s environment, companies are often the target for fraud. In order to minimize threats, your company should have an effective system of programs and controls in place. These programs and controls work by discouraging individuals from performing fraudulent activities. The following conditions are generally present for fraud to occur: Incentive/pressure. Relates to finances, personal …
While technology continues to revolutionize business industries, its ever-changing nature constantly poses new risks that we must actively protect our businesses against. According to the Better Business Bureau’s Scams and Your Small Business Research Report, the sum of losses for small businesses due to cyberattacks amounts to approximately $7 billion per year (2018). These attackers …
When you think about the Sarbanes-Oxley Act of 2002 – SOX – Section 404 what comes to mind? Large scale fraud that caused the act? Increased government regulation around financial reporting? Requirement of controls and the disclosure of the assessment of internal controls? One of the last words that might come to mind is efficiency. …
Upon hearing the term “fraud,” companies like Enron and Worldcom typically come to mind. While it’s usually these large, complex cases that get the public’s attention, the truth is that numerous forms of fraud can run rampant in any type of organization. In fact, a study by the Association of Certified Fraud Examiners (ACFE) reported …
Many businesses are unsure of how long their records need to be saved. Some save everything while others are quick to shred whenever they get the chance. With many businesses becoming paperless, it can be easy to dump those files in the recycle bin and empty it out in the blink of an eye. To …
Dishonest employees can see an opportunity to steal from the company through expense reimbursements. If you don’t have a strong travel and expenses policy that is routinely monitored and enforced, you open yourself up for the risk of expense reimbursement fraud. Some common examples of fraud schemes that impact everyday companies are: Double billing: seeking …
Data breach is a topic that makes the news when large companies are affected. Earlier this year, Arizona’s largest health system provider, Banner Health, was hacked. As one of the affected individuals, I can only think about the immediate cost that Banner Health incurred when they offered me and all those impacted by the breach …
Electronic storage is becoming commonplace in today’s work environment and that creates modern perils for managing financial data. Companies should continue to revisit how they use electronic storage to their benefit, as well as the controls over items stored, to ensure that the control environment remains strong. This blog will cover three components to electronic …
As we put another calendar year in the books and start closing out year-end accounting records, now is a great time to revisit one of the key components of the financial close process, account reconciliations. By performing proper account reconciliations, businesses can prevent a lot of material errors that can occur on their financial statements. …