Internal Controls On Assets

Checks - These can be diverted to personal use in many ingenious ways. Checks received in the mail, over the counter or on field calls may never be put into the company's account, and if controls are not sufficient, if a methodology is not in place to reconcile all revenue sources and assets which have been converted to moneys, then there is risk that the moneys are not received and no one is aware. Examples are: inadequate A/R records or reconciliation to receipts such that payments have been received on an account but not deposited in the bank; inventory of all kinds which could be sold for cash or checks that were diverted.