It is a common misperception that only public companies are required to have robust internal controls. In fact, all businesses should have internal controls in place, regardless of size or ownership type. Internal controls are the procedures and processes designed to prevent and detect errors, fraud, and misuse of company resources.
When internal controls are properly designed and implemented, they can provide reasonable assurance that a company’s financial statements are reliable, its assets are safeguarded, and its operations are carried out efficiently and effectively. Internal controls should be reviewed and updated regularly to ensure that they are still relevant and effective.
As an accountant, it is important to be familiar with the internal controls of your company so that you can ensure that they are adequate and effective. If you have any questions about the internal controls of your company, please don’t hesitate to ask your accountant.
