The importance of audit evidence

Audit evidence simply put is the documentation support and the information collected that allows your auditor to review your entity’s financial transactions, internal controls, and other items necessary to allow your auditors to certify the financial statements. This support and information requested by your auditor will vary not only by the entity under audit but …

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Help wanted but high unemployment

It is no secret that COVID-19 has affected the world as we know it. When the pandemic started, the unemployment rate skyrocketed seemingly overnight due to forced closures in order to limit the spread of the virus. The unemployment rate is now 6% but if you walk into any restaurant or retail business a “We’re …

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Internal controls in small organizations

Proper internal controls are essential for all organizations but can be very difficult for small nonprofits to accomplish due to size of the staff. It is critical that segregation of duties is implemented throughout the financial policies. Don’t miss: Is your nonprofit going through a name change? Four key controls (not all-inclusive) that should be …

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Will work from home continue?

A common question as we have spent the last year working from home and being very cautious about visiting public places, including our own office. How have government agencies handled this transition to work from home? Don’t miss: Don’t forget about GASB 84! There is a wide range in what our clients have experienced and …

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Don’t give employees opportunity to commit fraud

The term “segregation of duties” is used in the prevention of fraud within an organization. It involves separating duties among employees so that no single staff person is put in an advantageous position to exploit their control for self-gain. A large factor in how someone commits fraud and gets away with it is that they …

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Internal Control Policies Reported on the 990

Lately I’ve received several questions about the policies and procedures listed on page 6 Part VI Section B, three of which are a written conflict of interest policy, whistle blower policy, and a document and retention policy. The concern always seems to be, what if the organization doesn’t have these policies in place? The IRS …

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Internal Control & Outsourcing

What is the first thing that comes to mind when you think of internal controls? Making sure work is double checked? Making sure that the employee in charge of reconciling the bank account does not also receive the mail, sign checks, and reconcile receivable and payable accounts? Segregation of duties is typically one of the …

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Internal Control for Plan Management

Plan administrators are faced with numerous rules and restrictions put in place not only by those in charge of retirement plan regulation, but also as stipulated in the plan document itself. Strong internal controls are essential for the administration of any plan to ensure accurate financial reporting, protection of plan assets and compliance with all …

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Is Small Business Safe from Fraud?

Many small business owners have a feeling of invincibility when it comes to employee fraud.  Their “dedicated” and “loyal” employees would never steal from them.  Or maybe they are just too small to make any theft worthwhile.  The Association of Certified Fraud Examiners (ACFE) thinks otherwise and has the statistics to back it up. Recently …

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Understanding the Control Environment

When trying to deter fraud, most companies focus their time on developing effective internal control procedures and segregation of duties.  Though developing these types of systems are important, a common element of the COSO Internal Control Framework that is often overlooked is the organization’s control environment. The control environment is important to all organizations since …

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