There are times in business when it is important to take a look inward. An internal controls audit can help a business that may not have all the facts gain perspective. GMG CPAs can provide assistance and support during an internal controls audit. Our professional staff can direct the process so that all critical information is gathered.
Internal control, as defined in accounting and auditing, is a process for assuring achievement of an organization's objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies.
Generally speaking, there are two types of controls: preventive and detective. Both types of controls are essential to an effective internal control system. From a quality standpoint, preventive controls are essential because they are proactive and emphasize quality. However, detective controls play a critical role by providing evidence that the preventive controls are functioning as intended.