Implementing ICFR- Will likely achieve long-term financial success and sustainability

Internal controls help businesses to identify, assess, and mitigate risks associated with financial reporting processes. By implementing control measures, companies can minimize the risk of financial losses, operational inefficiencies, and reputational damage.

This leads to more effective risk management and a safer business environment.

However, Implementing ICFR requires businesses to evaluate their financial processes, identify weaknesses, and establish efficient controls. This evaluation often leads to process improvements, streamlined operations, and the elimination of redundant or inefficient practices.

As a result, businesses can enhance operational efficiency, reduce costs, and improve overall productivity.

ICFR helps safeguard a company's assets by implementing control mechanisms such as:

• Physical security,
• Access controls, and
• Segregation of duties.

Implementing the aforementioned measures can effectively mitigate the following risk:

• Risk of theft,
• Misappropriation, or
• Misuse of assets, both tangible and intangible.

Thus, the protection of assets contributes to the financial stability and long-term viability of the business.

Last updated: 23/08/2023

Article contributed by:

Risk and Transaction Advisory department

MBG Corporate Services 

To Access our Flyer Click here:- Implementing ICFR