Accounting firm Pretoria

Back to basics: Internal Controls

What is internal control? 

It is the system of checks and balances to ensure the company’s financial records are accurate and reliable being the result of transactions that are carried out and recorded timeously, accurately and efficiently.

The effectiveness of internal controls is dependent on management’s attitude towards controls.

Indications of a strong internal control environment

  • Employees possess the necessary skills and competence required
  • Recruitment agencies or HR checks and verify the details in CVs properly.
  • Proper inhouse training to staff
  • Clear roles and responsibilities
  • Separation of duties are in place between functions of initiation, authorization, recording and reviewing.
  • Monitoring of staff performance

Strong document controls include:

  • Easy to understand designed forms
  • Sequentially pre-numbered documents to be able to track, record and reconcile documents.
  • Orders and Invoices approved by management
  • Payments approved by management
  • Physical verification and inspections are performed
  • Supporting documents accompany orders and deliveries
  • Information on documents comply with VAT requirements
  • Documents are filed regularly and in a logical manner

Strong Accounting and Admin controls include:

  • Reconciliations between accounting records and source documents – bank accounts, supplier statements, customer statements.
  • Overall review done by management.
  • Statutory requirements such as VAT returns, Payroll returns, Tax returns reviewed by management.
  • Filing are done in a logical manner i.e. monthly file for expenses and income.

About

Wessels & Associates, Chartered Accountants (SA), has the strategic and analytical background to help you formulate a winning strategy and avoid making costly mistakes in any sphere of your business ensuring that every move you make, is a winning one!

When you want to take your business to the next level, you need to partner with a responsible professional who has a holistic business approach and knowledge that enables them to approach things differently.

Wessels & Associates provides financial support services in Accounting, Tax, Auditing and Consulting to individuals and small to medium size businesses.

We can give your business the decision-making expertise it needs to create real, measurable results to maximize your chance of success.

Wessels & Associates holds the following professional memberships:

SAICA :             South African Institute of Chartered Accountants.

IRBA:               Independent Regulatory Board of Auditors

SARS:               SARS Tax Practitioner

SAGE:               Forum member

Wessels & Associates Chartered Accountants and Auditors was founded by Theunie de Beer (previously Wessels).  Theunie is a Registered Chartered Accountant (SA) and Registered Auditor since 2011.

Theunie is also a Commissioner of Oaths and a SARS registered Tax practitioner and members of SAICA and IRBA.

Wessels & Associates was established and registered as an Audit Firm in 2014 with the Independent Regulatory Board of Auditors.

We are situated in Pretoria, Gauteng, South Africa.

We aim to deliver quality financial reporting in a time frame that is useful and beneficial to the users of these reports.