Having strong internal controls in place can go a long way toward preventing fraud. With the right strategies, including the use of, but the process doesn’t have to become extremely cumbersome. The couple explained that these checks do not always have to cover every transaction, but spot-checking frequently will have a profound affect on the likelihood of theft.
AllBusiness.com also advised that adequate internal controls are a necessity for firms looking to minimize the potential for fraud, maintain compliance with industry standards and ensure that operations are running smoothly. The source emphasized that restricting access to some information and assets is critical and, similarly to the Whites, stated that no one staff member should record and process a transaction.
Accounts payable is one of the most important aspects of an organization. It is worthwhile for leaders to craft and enforce effective policies and procedures to protect their businesses’ wellbeing at all times. Not have strong controls in accounts payable is a chance that is simply too risky for any company to take.