Internal controls establishment & optimization
Objectives of internal control:
Efficient conduct of business:
Controls should be in place to ensure that processes flow smoothly and operations are free from disruptions. This mitigates against the risk of inefficiencies and threats to the creation of value in the organization.
Controls should be in place to ensure that assets are deployed for their proper purposes, and are not vulnerable to misuse or theft. A comprehensive approach to his objective should consider all assets, including both tangible and intangible assets.
Preventing and detecting fraud and other unlawful acts:
Even small businesses with simple organization structures may fall victim to these violations, but as organizations increase in size and complexity, the nature of fraudulent practices becomes more diverse, and controls must be capable of addressing these.
Completeness and accuracy of financial records:
An organization cannot produce accurate financial statements if its financial records are unreliable. Systems should be capable of recording transactions so that the nature of business transacted is properly reflected in the financial accounts.
Timely preparation of financial statements:
Organizations should be able to fulfil their legal obligations to submit their account, accurately and on time. They also have a duty to their shareholders to produce meaningful statements. Internal controls may also be applied to management accounting processes, which are necessary for effective strategic planning, decision taking and monitoring of organizational performance.
At Procure.az we support our customers to reach all above mentioned goals by utilizing our diverse expertise and worldwide best practices, that modern multinational organizations use.