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Internal Controls

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Sufficient internal controls are critical to mitigating fraud.  Every company is susceptible to fraud, especially small businesses who have either no or limited internal controls.  McCarthy & Company's professionals will evaluate your company's operations to determine if the appropriate controls are in place to help protect your business from employee theft.

According to research study entitled the 2012 Report to the Nations by the Association of Certified Fraud Examiners the typical organization loses 5% of its revenues to fraud each year. The median loss caused by the occupational fraud cases reported in the study was $140,000. More than one-fifth of these cases caused losses of at least $1 million. Furthermore, the study found that 49% of the victim organizations did not recover any of the losses suffered due to fraud. 

McCarthy & Company will assess your internal control systems to determine the effectiveness of your procedures. We will then make recommendations to help your company correct any inefficient or ineffective operating procedures we find.

McCarthy & Company can help you:

  • Segregate duties among different people to help reduce the risk of error or inappropriate actions. No one person should have control over all aspects of any financial transaction.
  • Periodically check transactions to see if an authorized person approved them.
  • Establish procedures for someone besides the preparer or transactor to routinely review records and reconcile transactions to determine if they have been properly processed.
  • Check that equipment, inventories, cash and other property are secured physically, counted periodically and compared with item descriptions shown on control records.
  • Provide employees with appropriate training and guidance so they have the knowledge necessary to carry out their job duties, are provided with an appropriate level of direction and supervision, and are aware of the proper channels for reporting suspected improprieties.
  • Document policies and procedures and make them accessible to employees to provide your staff with direction in the event of prolonged employee absences or turnover.
  • Review operations to ascertain whether your results are consistent with established objectives and goals and whether the operations are being carried out as planned.

Experience McCarthy & Company! Discover how you will benefit from working with us.

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