Internal Controls and Audits
Policies & Procedures
Policies and procedures are an essential component of any organization as they provide the framework for consistent and eﬃcient processes. They reinforce the tone at the top and clarify the standards and expectations of employees, which enhances the quality of your organization's products and services.
When policies and procedures are in place and being adhered to, issues are less likely to occur. This reduces liability risks for your organization and limits interruptions in operations. When practices deviate from policy, it usually means one of two things
1. Your organization needs to better communicate policy and procedures with your staﬀ and enforce compliance; or
2. Your policy and procedures are outdated or incomplete.
- Employees can't follow procedures that don't exist, contradict other policies, or fail to address a signiﬁcant shift in technology or practice. Organizational leadership must regularly review and revise policies and procedures, taking new regulations, standards and technology changes into account.
- Our team of experienced professionals can help you establish and implement a system of policies as well as processes that are appropriate for your organization to ensure your framework is in place.
Sarbanes-Oxley (SOX) Compliance
Security and Exchange Commission rules require that "the assessment of a company's internal control over ﬁnancial reporting must be based on procedures suﬃcient both to evaluate its design and to test its operating eﬀectiveness." In order to obtain reasonable assurance regarding the operating eﬀectiveness of controls, key controls must be tested to validate their eﬀectiveness.
How can we help? You can choose among the following options:
1. We provide you with experienced SOX auditors and testers to help support your internal audit team in performing walkthroughs and key controls
2. We act as your outsourced Governance, Risk and Compliance (GRC) Team if you do not have sound internal audit capacities to comply with all the SOX We will do the following:
- Evaluate your control environment and all its components.
- Perform walkthroughs.
- Develop test plans to validate the operating eﬀectiveness of key controls for each process.
- Complete test procedures in accordance with the test plan to identify, analyze and document suﬃcient information to demonstrate the achievement of the test objectives
- Document test procedures and maintain evidential matter to provide reasonable support for management's assessment of the eﬀectiveness of the company's internal control over ﬁnancial reporting
- Identify and evaluate control deﬁciencies and remediation.
- Year-end follow-up and roll-forward testing.
Achieving reliable ﬁnancial reports and regulatory compliance...navigating risks...streamlining operations...promoting stakeholder conﬁdence. The beneﬁts of a high-quality internal audit are limitless.
Whether you're looking to establish an internal audit function, attain or maintain compliance with Sarbanes-Oxley Section 404 (SOX 404) or government contracts, mitigate your risk of fraud, or gain an overall assessment of your internal controls, you can count on Kinetic CPA Group, LLC for reliable and timely business solutions.
We assess your internal control systems to determine the eﬃciency and eﬀectiveness of your operating procedures. Then we make recommendations that help your company become stronger and more proﬁtable by correcting any ineﬃcient or ineﬀective operating procedures we ﬁnd.
What we do for you...
- Implement segregation of duties so that duties are divided, or segregated, among diﬀerent people to reduce risk of error or inappropriate actions. No one person has control over all aspects of any ﬁnancial transaction.
- Make sure transactions are authorized by a person delegated approval authority when the transactions are consistent with policy and funds are available
- Ensure records are routinely reviewed and reconciled, by someone other than the preparer or transaction originator, to determine that transactions have been properly processed
- Make certain that equipment, inventories, cash and other property are secured physically, counted periodically, and compared with item descriptions shown on control records.
- Provide employees with appropriate training and guidance to ensure they have the knowledge necessary to carry out their job duties, are provided with an appropriate level of direction and supervision...and are aware of the proper channels for reporting suspected improprieties.
- Document policies and procedures and making them accessible to employees. The documented policies and procedures provide day-to-day guidance to your staﬀ and continuation of duties in the event of prolonged employee absences or turnover.
- Review operations to ascertain whether results are consistent with established objectives and goals and whether the operations are being carried out as planned.