What are the best practices for internal controls in a business?

What are the best practices for internal controls in a business?

Best practices for internal controls include segregation of duties, regular audits, and comprehensive documentation.

Can you explain why segregation of duties is important?

Segregation of duties helps prevent fraud and errors by ensuring that no single individual has control over all aspects of a financial transaction.

What role do audits play in internal controls?

Audits provide an independent assessment of the effectiveness of internal controls, helping to identify weaknesses and areas for improvement.

How often should a business conduct internal audits?

It's recommended to conduct internal audits at least annually, but more frequent audits may be necessary depending on the business's risk profile.