Internal controls are an organization’s processes, regulations, and practices for maintaining corporate governance’s accuracy in fostering transparency and avoiding fraud. Internal controls may help enhance operating performance by improving the accuracy and reliability of financial statements, in addition to compliance with laws and legislation and discouraging workers from embezzling assets or committing fraud.
In another uber-treat episode of The Compliance Handbook, I’ve invited Karen Woody to talk about internal controls’ role in compliance.
Key takeaways discussed in the chapter:
- Understand how internal controls are compared to smoke alarms that go off if there’s some wrongdoing happening.
- Dive deeper into the four keys of internal controls for compliance. Learn how to use each key in your goal to have an ethical company.
- Get the point that Internal controls can change, evolve, and grow as the bad guys get more sophisticated. Find the solution on how your organization can implement a dynamic policy.
- Wade through the COSO 2013 Internal Controls Framework and see if the same policies will work for your organization.
- Have knowledge of how the SEC views internal controls and why we have non-bribery SEC internal control enforcement actions.
- Make sense of some lessons in failures of internal controls.
The “Nuts and Bolts” for Creating a Comprehensive Compliance Plan
The first chapter of this unique work lays out a succinct yet thorough 31-day approach to operationalizing a company’s compliance regimen. Beginning with a section on what 2020 brought to the compliance landscape, the chapter methodically outlines best practices for everything from establishing policies, procedures, and internal controls, to assessing risk, training, handling investigations, and more. Each day ends with three key takeaways you can implement at little or no cost.
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