Internal Controls Over Financial Reporting
Is your company’s financial reporting error-free? Does its reporting process ensure minimization of risk? These are important questions to consider for small non-profits and publicly-traded companies alike, and an audit of internal controls over financial reporting (ICFR) will help answer them. Internal controls (in the context of ICFR) are policies and procedures companies put in place to ensure the continued reliability of accounting systems. Although no practical system can assure 100% error- and risk-free financial reporting, an audit of your company’s ICFR will help uncover any issues with its reporting process and put you one step closer to achieving compliance with GAAP.
The RPB Difference: Expertise from Over 50 Audits a Year
As the oldest registered CPA firm in Wisconsin (we were founded in 1907), we’ve had a lot of practice auditing internal controls. We perform over 50 audits every year and are proud to be a long-time member of the Government Audit Quality Center (GAQC) – an organization dedicated to promoting the importance of quality governmental audits. What’s more, our internal controls accountants obtain 24 government related CPE credits every two years, ensuring a continuously up-to-date understanding of the ever-changing audit landscape.
“We’ve been a client of RPB’s for nearly a decade. Pat Hoffert and Katie Reilly continue to keep us on target with internal controls through our annual audit. Their yearly guidance continues to help us grow. We feel RPB treats us like they would a large company—like we matter.”
—Jessica Raddemann, Wellness Council of Wisconsin
Are Audits of ICFR Required?
For non-profit and privately-owned entities, an audit of a company’s internal controls over financial reporting are critical to detecting and minimizing waste, abuse and even fraud. For publically-traded companies, federal regulations actually require a deeper audit of the company’s internal controls.
Ultimately, an internal controls audit is paramount to establishing timely and accurate financial information, which in turn:
- Helps detect and prevent fraud
- Helps management fulfill its financial reporting responsibilities
- Helps ensure the business remains a thriving, vital organization for years to come
- Garners investor confidence
So, although they’re not always required, for obvious reasons it’s strongly recommended businesses undergo a thorough internal control audit.