Internal Control
VEZIN INTERNAL CONTROL SERVICES
What is Internal Control?
Internal controls are all measures developed against risks that may prevent our businesses from achieving their goals. These measures may relate to systems, processes, and human resources. Establishing policies, procedures, and systems, assigning competent human resources, and clearly determining the roles and responsibilities of the personnel in the processes such as production, sales & marketing, finance, human resources, etc. in an organization are the examples of internal controls.
What Benefits Do Internal Controls Provide?
In our globalizing world, our companies face many strategic, financial, operational, technological, reputation, regulatory compliance, cyber, etc. risks that may prevent them from achieving their goals. Our companies must have very strong organizational structures, processes, systems and human resources against these risks. Internal controls help your business achieve its objectives against all these risks.
We can express the benefits of internal controls under the headings of financial, operational, compliance and reliability.
Financially, they ensure the protection of your assets, prevention of abuse, accuracy of financial reporting and increase in value of your company.
Operationally, they prevent errors in your business processes, increase effectiveness and efficiency, reduce your costs and bureaucracy, and ensure that your customers are satisfied with your services and products.
Regarding compliance, they ensure compliance with laws and regulations, prevention of lawsuits and penalties, and protection and enhancement of corporate reputation.
Effective controls in terms of reliability, they enable you to institutionalize your business, increase your competitiveness, ensure sustainability, protect and develop your brand, and find resources from the financial market at more affordable costs.
What is Internal Control Not?
Unfortunately, there are very common misconceptions about internal controls. Some of these are as follows:
• Internal controls are not an end, but tools that enable us to achieve our goals.
• Internal control is not a separate entity; It is a system, a process and is included in the way the business does business.
• Execution of internal controls is not the responsibility of a single unit. The board of directors, managers and all other personnel have responsibility.
• Internal controls are owned by management units, not internal audit.
• Internal control is not internal audit. Internal audit evaluates the effectiveness of internal controls and provides independent and objective assurance services to the board of directors in this regard. Internal audit provides consultancy services to management units to improve internal controls.
• Internal controls do not provide one hundred percent assurance. It is designed to provide reasonable assurance.
As Vezin, we offer the following internal control services to ensure that you achieve your corporate goals.
PROCESS IMPROVEMENT AND RISK-FOCUSED DESIGN OF INTERNAL CONTROLS
It is vital for our businesses to have effective internal controls in order to achieve their strategic goals. As Vezin, we support you in realizing the risk-oriented design of your internal controls by evaluating the effectiveness of your internal controls against risks that may prevent you from achieving your goals, by identifying internal controls that are ineffective, that is, incorrectly designed, do not eliminate operationally related risks, have high costs, create unnecessary workload and bureaucracy.
We provide this service in the stages detailed below.
1- Understanding the Current Status of the Process
At this stage, in order to understand the process included in the evaluation, current policies, procedures, instructions, workflows, job descriptions, organizational chart, etc. related to the process are examined. We are reviewing the documentation. We examine the systems used in the process. We ensure an end-to-end understanding of the process by conducting interviews with the process owner manager and staff.
2- Identification and Evaluation of Process-Related Risks and Controls
We identify risks that may prevent the achievement of process goals and determine the existing controls established against these risks. We prioritize risks. We evaluate the ability of existing controls to reduce or eliminate process-related risks. We evaluate control deficiencies and excesses. We create risk control matrices for the process.
3- Determination of Points Requiring Improvement and Management Action Plans for These
By evaluating the effectiveness of process-related controls, control points that need improvement and recommendations regarding them are determined. Opinions of management units are taken regarding the identified improvement areas and an agreement is reached on management action plans.
4- Evaluation and Reporting
Determined determinations, suggestions and action plans are presented to senior management and/or the board of directors, their opinions and evaluations are received, and all results of the work are reported.
INTERNAL CONTROL TRAININGS
As Vezin, we provide the following training on internal controls and internal control frameworks for the training needs of your corporate staff, internal audit team, board of directors and committee members.
1- COSO Internal control framework
2- Evaluating the effectiveness of the COSO Internal Control framework and internal controls
3- Internal audit, internal control and risk management
4- Control Self-Assessment Methodology