Our Audit Manager, Paul Wobser, CPA, wrote an article every business owner should read to help prevent fraud. The ten controls are listed below but the full article can be found online through the Boerne Business Monthly link.

10 Easy Internal Controls for Small and Medium Sized Businesses

  1. Management review of financial data
  2. Prepare and review account reconciliations in a timely fashion
  3. Maintain a vendor master file and require authorizations for any changes to the listing or deviations from the policy
  4. Approval of expense reports and purchases that exceed established limits
  5. Purchase order, receiving report and invoice are matched and canceled prior to payment
  6. Establish policies for approval of all accounts receivable write-offs and credit memos greater than specified amounts
  7. Take advantage of services provided by your bank to  mitigate risks
  8. Password protection and access limitations
  9. Job rotation or mandatory vacation
  10. Whilstleblower hotline

Link to full article