Unfortunately, it is certain that at some point as a controller in your monitoring of tasks you have uttered these words. Here are some tips to fix errors in internal control.
So if as a result of the analysis you have detected errors in the control system, breathe, count to ten and apply the following steps:
- a) Put a solution in place as soon as possible, to control this gap in control, which could become a breeding ground for error or fraud. After applying a provisional manual solution, the most appropriate thing would be to opt for automation of the control and the use of computer tools that provide greater safety and efficiency.
- b) Check that this weakness in the control system has not produced any errors in the financial statements or any financial loss to the entity. The time period to be reviewed will be equivalent to the time during which the controls have not worked.
- c) In the event that an employee has obtained personal gain at the expense of the detected weakness in control, the corresponding responsibilities must be determined.
And, as you already know, it's better to be safe than sorry. So to ensure that internal control performs its function, it is necessary to:
- Ensure that the security in the information systems is adequate. These controls must be reviewed periodically.
- Design an appropriate segregation of duties in all business processes.
- Establish appropriate delegation of authority, so that excessive power is not accumulated by a few people within the organisation.
- Implement Management Control departments that generate, analyse and share the available business information.
- Periodically review the established control procedures to verify that they continue to function as they were designed, a role performed by an Internal Audit or Management Control Department.