New Year’s resolutions are rarely achieved because people tend to make them too extreme. If your goal is to start exercising, you shouldn’t start January 1 with a marathon. Think baby steps. The same rationale should be applied to your business goals. Every company has room for improvement.
A company’s internal controls should not be limited to risks that directly impact financial statement line items such as improper revenue recognition or unsupported reconciliations. You should consider other risks that would be detrimental to your business and what controls might be established to mitigate those risks.
What should you do after you complete your flowcharts? Should you place them on a bookshelf with books you may never read again? Absolutely not. Instead, you should use each flowchart as a tool to strengthen your business.
Do you have narratives, but your current process documentation is outdated or lacks sufficient detail? Follow these steps to toughen them up!
Imagine a company that is running without documented processes in place. Even someone who is not an internal audit expert would think that would raise some red flags. What about companies that have outdated documented processes, or documentation with a sub-par level of detail? Shouldn’t that also raise red flags?
Reviewers don’t want to give the same comments over and over again. A good practice is to make a checklist of those comments and quickly go through them before you turn in the next project for review.
While internal auditing opens many doors for employees, it can create hiring issues for department heads. This blog post offers strategies for finding the right experienced internal auditors; retaining good employees; and devising and implementing staffing solutions for times when your department needs assistance.