INTERNAL CONTROLS | lishforensics

Internal Control Investigations

Every business has Internal Control issues. For some they are are part of their strength and for others they are abysmal and a warning sign for problems. Good Internal Controls can help prevent fraud and catch it, if it happens. Controls help auditors do their jobs and in many cases they are the key to an enterprises profitablity or losses if there are none. What can Lish Forensics do for you?

Make sure there are proper authorizations for transactions and that the authorization itself and the making the transaction happen, are not done by the same person.
Review and fix procedures that call for the reconciliation of books and records to third party statements like bank statements, finance company reports, franchise reports and deal payment reports.
Institute analytics that will check transactions as they happen, such as reports to check cashiers in supermarkets with consistent low meat sales.
Document policies for future employees.
Compare and reconcile industry standard results.
Look for fraud, embezzlement, inventory theft, bill-back conversions in cash businesses, overbilling, payroll fraud (bogus employees), fictitious vendors, kick-backs and manual journal entry manipulations. Imagine a plumbing supply wholesaler allegedly makes a $50,000 payment to Kohler but the actual check shows the name of the daughter of one of the partners, for her wedding. The check from the computer might have been drawn to Kohler but that was discarded and replaced with the manual check. If you don’t look, you don’t find it.