Effective Internal Controls for Small Businesses (Course Id 936)

Management Services - Management Services for Course Id 936

Small business enterprises sometimes take the position that effective internal controls cannot be achieved. There aren't enough employees for adequate segregation of duties. Many, if not most, have no internal audit function. However, even within the confines of these and other challenges, small businesses can achieve an effective internal control structure.

To overcome an inability to segregate duties as well as other issues, small businesses must look for mitigating controls. The most pervasive mitigating control is the direct oversight of management. This oversight may take the form of financial statement review, approving disbursements, signing checks as well as other review processes. While there are other considerations as to whether the oversight of management may mitigate a lack of segregation of duties and other internal control challenges, if done correctly, this is one of the best ways to overcome these inherent issues.

There are internal control fundamentals that are appropriate for small businesses. This course discusses fundamental operational and accounting controls and also reviews the optimal company culture for an effective internal control environment.

NASBA QAS - Text - Technical - NASBA Registry - 936

Course Learning Objectives

• Identify and define appropriate internal controls for a small business entity
  
• Define ways to overcome lack of segregation of duties
  
• Associate certain internal controls with the prevention or detection of fraud
  
• Identify where multiple approval levels may be appropriate in the cash disbursement process

Chapter 1 - Effective Internal Controls for Small Businesses

Course Learning Objectives

Course Introduction

Fundamental Operational Controls

Segregation of Duties

Cash Disbursements

Cash Receipts

Accounts Receivable

Accounts Payable

Inventory

Fundamental Accounting Controls

Fundamental Internal Control Environment

Case Study – Koss Corporation

Other Factors to Consider

Controls over Information Technology

HR Procedures

Risk Assessment

Review Questions

Glossary