Small business enterprises sometimes take the position that effective internal controls cannot be achieved. There aren’t enough employees for adequate segregation of duties. Many, if not most, have no internal audit function. However, even within the confines of these and other challenges, small businesses can achieve an effective internal control structure.
To overcome an inability to segregate duties as well as other issues, small businesses must look for mitigating controls. The most pervasive mitigating control is the direct oversight of management. This oversight may take the form of financial statement review, approving disbursements, signing checks as well as other review processes. While there are other considerations as to whether the oversight of management may mitigate a lack of segregation of duties and other internal control challenges, if done correctly, this is one of the best ways to overcome these inherent issues.
There are internal control fundamentals that are appropriate for small businesses. This course discusses fundamental operational and accounting controls and also reviews the optimal company culture for an effective internal control environment.
Course Publication Date:
December 07, 2024
This course is available with
NO ADDITIONAL FEE if you have an active
self study membership or
all access membership or can be purchased for
$15.00!
| Author: | Mill Creek Publishing |
| Course No: | ACT-INTERNAL-2924 |
| Recommended CPE: | 1.50 |
| Delivery Method: | QAS Self Study |
| Level of Knowledge: | Overview |
| Advanced Preparation: | None |
| Recommended Field of Study: | Accounting
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Learning Objectives
- Identify and define appropriate internal controls for a small business entity.
- Define ways to overcome lack of segregation of duties.
- Associate certain internal controls with the prevention or detection of fraud.
- Identify where multiple approval levels may be appropriate in the cash disbursement process.