VITALICS INTERNAL CONTROL PROGRAM REPORT TEMPLATES
Internal control forms are key to providing the missing link for the lack of job segregation. They are commonly used for work accountability and authorization so managers, owners and employees can have assurance that the records are accurate, reviewed and approved. Make sure your business is lowering it’s risks by writing a program tailored to its business operation. Using the Vitalics internal control program report templates will make it easier to set up and customize your own control procedures.
INTERNAL CONTROL PROGRAM REPORT TEMPLATES
WHAT IS VITALICS
Vitalics is an internal control program that provides the tools to easily set up and implement your company’s controls and create an internal control program report template. The complete Vitalics Internal Control Program contains over 140 already created yet customizable internal control forms, checklists and a fraud prevention and internal control workbook. Vitalics forms are also available separately. Whether you are a business owner, office manager, bookkeeper or accountant, Vitalics will provide you the reassurance that your work or your company assets are protected.
COMMON PURCHASING FRAUD SCHEMES
Types of Schemes in Purchasing
Collusion is a secret or illegal cooperation and or conspiracy in order to cheat or deceive others for a benefit.
Bribery is the offering, giving, receiving, or soliciting anything of value to influence an official act.
Conflicts of Interest is fraud in which employees, managers or executives put their personal interest above the company’s interest. Usually resulting in an adverse affect on the organization.
Economic extortion scheme involves an employee demanding payment from a vendor in order to make or influence a decision in that vendor’s favor.
INTERNAL CONTROL WEAKNESSES
Budget your Internal Control Costs
If the average small business loses at least 5% of their revenues annually to fraud, budgeting internal control review, maintenance and implementation as you would your tax preparation and accounting fees will save you hundreds of thousands in lost revenue from fraud.
Hire an Outside Consultant – CFE, CIA, CPA
If internal controls are over your head and you don’t have the time hire an outside consultant to protect your assets. It is a lot less expensive than the average cost of a fraud examination which can run at least $15,000 before lawyers are involved.
Train your Employees on Fraud Prevention
Fraud isn’t just employee embezzlement – customer fraud is high along with cyber security issues and identity theft. Make sure your internal control procedures include all aspects of asset protection against your organization. Training your employees and putting guidelines on computers, confidential documentation destruction, storage and even customer shipments will help them know what to look for and prevent as well.
Review your Records!
If you do not review your records you will never know what is going on within your books. QuickBooks reports can be manipulated so if you think that just because your bookkeeper provided you an income statement and balance sheet it doesn’t mean what is reported is the truth. You need to know where those numbers came from, specifically your bank account. Was the deposit really $50,000 as QuickBooks reads or was a journal entry created to manipulate that deposit and what cleared the bank was only $42,000?