Internal Control Evaluations and Risk Assessments

Calvetti Ferguson can help private companies with internal control evaluations by offering internal audit and consulting services. This can include reviewing internal controls, testing the effectiveness of controls, making recommendations for improvement, and helping implement changes. By providing these services, Calvetti Ferguson can help private companies strengthen their internal controls and mitigate risk, thus improving their overall financial and operational performance.

Internal controls are policies, procedures, and processes implemented by a company to ensure the reliability of financial reporting, the efficiency of operations, and compliance with laws and regulations. For middle-market companies, standard internal controls include:

• Segregation of duties: Dividing responsibilities among different employees to reduce the risk of fraud or error.
• Authorization and approval: Implementing a transparent chain of command for approvals, such as requiring approvals for significant transactions or expenditures.
• Physical controls: Safeguarding assets and sensitive information through the use of locks, alarms, and other physical controls.
• Information technology controls: Implementing secure data processing, storage, and transmission systems.
• Performance review and monitoring: Regularly reviewing and monitoring financial and operational results to detect and prevent fraud and errors.
• Internal audit: Conducting periodic internal audits to review and assess the effectiveness of internal controls.

Internal controls can help middle-market companies mitigate risks, improve efficiency, and provide stakeholders with greater confidence in the company’s financial reporting and operations.