12/4/2007 2:00 AM
Internal controls are a great way to conduct audits within your organization. Audits should help your company to become more efficient as well as meet regulatory compliance. In the past, most organizations have used detective controls which means your auditing team detects and identifies errors after they have occurred. Through technology, audits can now easily include preventative controls which let you catch errors before they occur. Using effective preventative controls can provide big benefits for your organization.
When monitoring your company internally, you can review your practices and expenditures to detect misspending, waste, and accounting errors. This detective controlling is a fairly inexpensive way to catch errors. The drawback is you detect errors after they have occurred. However you can make improvements and adjustments because you have spotted a problem.
Another way of monitoring errors is to catch them before they happened in a preventative manner. This type of auditing alerts you through monitoring processes against a set of rules and controls. The drawback to this type of system is it requires that an organization set up predefined rules and controls. This can be time consuming and difficult. But there are quite a few software options to help you set up preventative controls.
With the right internal audit software and effective controls and rules, you can reap big benefits for your organization. The time spent setting up this type of system and investing in quality software, such as Jadian, gives you flexibility and increased efficiency.