CHAPTER 1: INTERNAL CONTROLS
1.10 Consequences of Inadequate Internal Controls
The ACFE report states that, “lack of adequate internal controls was most commonly cited as the factor that allowed fraud to occur.”
While you may think this can’t happen in your company, statistics suggest otherwise. You must set and follow internal controls to reduce the possibility. It is hard to believe that someone we work with and trust may be stealing. However, it is best to set these controls with the mindset of “trust, but verify.”
When a company neglects internal controls, it runs several risks, including inaccurate financial reporting, inefficient processes, non-compliance with laws and regulations, and vulnerability of assets.
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THE ACCOUNTS RECEIVABLE SPECIALIST CERTIFICATION PROGRAM E-TEXTBOOK
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