One of the most effective ways to prevent fraud is implementation of strong internal controls including an effective segregation of duties. Internal controls as related to fraud are the measures, policies, and procedures a company puts in place to safeguard assets and ensure the reliability of accounting data. Many businesses will contend that there are sufficient internal controls in place to deter, or even eliminate, fraudulent actions. But, as experience has shown, last year’s internal controls may no longer be effective as when they were developed. Businesses change, and as they do, additional employees are hired for old and newly created positions. Regular “check-ups” for your business are effective management tools to use in establishing or modifying internal controls.
At KatzAbosch we know how important it is to be on the cutting edge of our industry and yours. We study and evaluate internal procedures to help reduce risk of error or fraud, increase efficiency and pass the value on to our accounting and audit consultation clients.
Process Improvement Around Internal Controls For Cost Savings
KatzAbosch recommends for those organizations which may be incurring significant costs to ensure compliance by layering controls and resources onto increasingly complex and inefficient processes that organizations proactively rationalize their internal control structure, taking a holistic approach and incorporating Lean Six Sigma principles.
Key Lean Six Sigma principles entail:
• Focusing on improving customer satisfaction,
• Reducing process variation,
• Understanding and improving process flows, and
• Eliminating waste (non-value-adding activities) from processes.
These guiding principles are the foundation of our approach which is lead by a Lean Six Sigma professional. To learn more about how our process improvement services can support your internal controls, click here.
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