Knowledge Centre

Protect your business from fraud, errors, and financial chaos. 

Internal Controls

1. What You Need to Know

Internal controls are the policies and systems that keep your business honest and accurate. 
They ensure your financial data is reliable, your assets are protected, and mistakes or fraud are caught early. Accountants design, implement, and monitor these controls so that you, your staff, and your stakeholders can trust the numbers. 

2. Why It Matters to You

Good controls are like insurance,  you only notice them when they’re missing. 

Prevents fraud, theft, and costly errors. 
Improves the accuracy of your financial information. 
Builds confidence with banks, funders, and investors. 
Supports smoother audits and regulatory inspections. 

3. Frameworks, Standards, or References 

Strong controls are built on global frameworks and practical processes. 

  • Frameworks to use: COSO Internal Control Framework, Segregation of Duties, Risk Management models. 

  • Standards & compliance: King IV (governance), Companies Act (directors’ responsibility for controls), IFRS (accuracy in reporting). 

  • References: CIBA practice guides on internal control and risk. 

  • What your accountant will actually do: 

  • Draft internal control policies and procedures. 

  • Set up segregation of duties in financial processes. 

  • Implement reconciliations and authorisation checks. 

  • Conduct internal audits and report weaknesses. 

4. How to Apply

Steps to strengthen your business controls: 

  1. Identify key risks in your finance processes (cash, payroll, procurement). 

  2. Work with your accountant to design controls to address them. 

  3. Implement segregation of duties where possible. 

  4. Review reconciliations monthly to detect irregularities. 

  5. Update policies regularly as your business grows.

5. Common Mistakes to Avoid 

Avoid these control gaps that leave businesses exposed: 

  • One person controls everything → Always separate duties. 

  • Not reconciling regularly → Errors compound if left unchecked. 

  • Over-reliance on trust → Systems protect people and relationships. 

  • Ignoring small control failures → They often signal bigger issues.