Each investment firm can benefit from thoughttful construction and proper operation of their internal control system. Internal controls system can be definied like a set of rules, policies and procedures which are implemented to provide reasonable assurance that the company’s daily operations are efficient and productive, resources are used efficiently, that all the information included in reporting is reliable, and that company complies with applicable laws, regulations and operating principles.
The key elements of the internal control system are:
- Environment control: The overall attitude, awareness, and actions of directors, managers and shareholders regarding the internal control sysstem and its importance to their company are reflected through environmental control. It is expressed by philosophy and operating styla, management sty, corporate culture, human resources policies and procedures, culture, values and expectations that a company put into place.
- Accounting system: Accounting system means system with which is used in a company to manage financial 0transactions, income, expences and other financial activities and allows classification, summarization, statement preparation and analysis for timely presentation of correct information.
- Control procedure: The additional policies and procedures adopted by the investment firm for ensuring the achievement of the specific goal of a business organization are the controlling procedures.
These control procedures are:
- Proper delegation of power
- Segregation of responsibility and separation of duties
- User access rights for information systems
- Preparation and use of documents
- Independent control over the execution of activities
- Information and communcation system: Communications are essential for eacha company. They rely on quality of informationa and effectiveness of dissemination. To establish relevant and reliable information systems to track operations and compliance is more then importand.
- Internal controls monitoring: Once controls are in place, it is necessary to verify their effectiveness.
Our company is well prepared to assist you with developing and implementing an internal control enviroment which is important for a company ´s ability to achieve its goals as well as with evaluating existing internal control of your company and following suggestions of improvements and changes.