Is a system of internal controls in place and operating?
A compliance or procedures manual gathering dust on a bookshelf will not serve anyone’s interests. • Is the system working as designed? No matter how good your formal system may be, you should expect informal systems to spring up around it. Many of these ad hoc methods are harmless. In fact, when you find them, some may be improvements over the formal system. In other instances, however, employees may circumvent important procedures in the interest of getting their work done more quickly or more easily. • Are exceptions and problems identified and resolved promptly? Of course, this is of critical importance. Once a potential problem is identified, prompt and effective resolution is the essence of compliance. • Is the system of controls reviewed periodically? Mergers, acquisitions, reorganizations, new staff and other changes necessitate that controls be frequently reviewed for continued effectiveness. In addition to these global issues, we also ask some more detailed questions that may
