Do you consider your company safe? Unfortunately, there is no shortage of ways for an organization to lose money without managers noticing. After all, there can be fraud in large financial amounts, but also small day-to-day expenses. Given this reality, it is necessary to make more strategic use of financial statements.
In this context, companies that turn to internal audits significantly reduce the incidence of fraud in their businesses. Whether due to regulatory requirements or administrative decisions, this choice improves internal controls.
As a result, it becomes more difficult for any kind of deflection or blows to go unnoticed. Want to know how to keep your business protected? See in this post The following are 4 tips to avoid fraud using financial statements!
- AUDIT EXPERT
In addition to identifying possible deviations, this specialist masters the intricacies of accounting standards and regulatory bodies.
One more advantage is that an independent audit gives an unprecedented view of the facts and figures. That is, often, the outside professional sees the phenomena with more ease.
- TRAIN AND SELECT YOUR TEAM VERY WELL
Don’t forget to bring the internal teams closer to the consultants. After all, they must be prepared to receive external auditors without sensitivity or personal issues.
The procedures and tasks carried out to prepare the financial statement are delicate. For this reason, this work must be performed by qualified and honest professionals.
- BET ON TECHNOLOGY
Financial statements are directly linked to efficient data collection. So, the more the business grows, the more efficient the control of operations must be.
Nowadays, specialized software is articulated with the systems of companies, facilitating day-to-day of accounting and tax management. With this care, the database will not cause distortions in the economic analyses.
In addition, these solutions bring together the activities of various sectors in a single environment. For this reason, managers can oversee inventory, accounting, sales, and whatever else is needed very easily. This broader look at routines is a great method to curb corporate fraud.
- INTENSIFY INTERNAL CONTROLS
As we have already said, financial statements depend on data. In this context, it is good to remember that virtually any activity in a business will involve money, whether in or out.
Faced with this reality, issues such as revenue, sales, the number of orders, and supplier management, among many others, must be performed and monitored with professionalism.
But what should we do in practice to have transparent and projected financial statements? A good way out is to count on the support of internal audit experts.
With this work, a scan is performed to identify failures in the control processes. More than that: experts point out solutions to these misconceptions.
Therefore, when they are audited, the financial statements gain greater credibility in the market. In addition, they bring greater transparency and sharpness to the numbers. That is, such analyzes contribute to the manager’s decision-making.
Indeed, the audit cannot guarantee that errors and fraud will not occur in the financial statements. But with it, the risks decrease significantly.
This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.
CA Aman Aggarwal
AKGVG & Associates