Internal Controls & Site Audits
Internal controls and site auditing plays a critical role in hotel management. Since effective internal controls are absolutely necessary for protecting our clients against waste and fraud, at Bridgeway Accounting, we use our time and resources to examine your internal controls set-up and suggest ways they can be improved so you can operate as efficiently and effectively as possible. Bridgeway Accounting helps assist a sound internal control environment by conducting quarterly audits and offering our support and advice for clients during external audits.
Importance of Internal Controls
Internal control and risk management are imperative for the improvement and proper management of a hotel’s finances. No matter how large or small a business is, there’s always a chance of fraud, which is why setting up internal controls is imperative. There are five key components of internal controls, and each of them can be beneficial to your business: control environment, risk assessment, control procedures, monitor controls, and information systems.
Control Environment
When deciding what behaviors are acceptable among employees, the management sets the standards. There should be policies established within every company, such as a code of ethics, which should be followed for the employees to take the internal controls seriously. Documented evidence of these internal controls is a vital part of business management so that each employee understands the company’s policies and practices. Bridgeway Accounting documents policies and procedures and makes them accessible to the staff for assured performance, consistency, and accountability.
Risk Assessment
To identify where fraud may occur, a company must perform a risk assessment, which provides a foundation for establishing internal controls. Identifying risks will enable the company to create policies that will minimize the damage of mistakes or fraud. Understanding the risk involved will help your company determine if more control needs to be put in place to mitigate risks. Bridgeway Accounting will regularly review internal controls for consistent implementation and effectiveness.
Control Procedures
A company gains access to the objectives of internal control through control procedures. This includes comparisons, checks, proper segregation of duties, sufficient record keeping, and proper approvals to protect the company’s assets. Bridgeway Accounting will help implement segregation of duties to reduce the chance of error or fraud.
Monitor Controls
In monitoring controls, no employees can process a transaction with out some sort of accountability or surveillance. Built-in surveillance in computer systems can be used to keep track of transactions. These systems can help flag any high-risk transactions and ensure fraud and errors are detected quickly. This makes committing fraud within the company a lot harder. Bridgeway Accounting will provide training and guidance to employees to ensure they understand and can perform their roles safely and effectively.
Information Systems
Every business needs an accurate system for keeping track of assets, losses, and profits. This system should be able to keep up with all financial transactions. This helps prevent errors and helps ensure the balances on the balance sheets are correct. Bridgeway Accounting will set up an approval workflow with appropriate management personnel for financial transactions.
