It is a know fact that having controls in a business is very important. But does having controls in place mean that you will be safe from everything? NO! You must have strong controls in place in order to prevent fraud from happening. Even if you think that you have good controls, you should constantly review them in order to make sure there are no leaks. This article about an audit on state Building and Grounds Section (Read Here) talks about how an legislative audit of the section found poor controls that could lead to serious issues.
Issues and ways to correct them!
1. They had people's social security numbers posted on a website in plain view for everyone to see.
Before a website goes live, you should look through every detail to make sure nothing is wrong and that everything is how it should look.
2. Purchase cards have very limited control. Each card has a limit of $250 - $3,000 a purchase. Also, more than half of the employees have cards, yet most of them don't even use it.
The purchase cards should have a max limit. This would prevent people from over spending money. They should also consider using cards for specific stores so people don't use it for their own good. Finally, they should have a control where you must sign the card out if you want to use it instead of just giving it to everyone.
3. There are errors in payments such as the rent for an office space.
Review your costs and expenses regularly! This will reduce the risk of you miss paying for something.
4. The computer recovery system for disasters is old which could make recovering data hard or even impossible.
Make sure to review your system recovery at least once a year. Data is the most important thing to protect. If you lose your data and you had on records that people owed you money, they will not owe up to what they owe you!
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