Internal Controls Assessment (GAP Analysis)

"A well-controlled company is a more profitable company." - Jack Welch

Internal controls are the cornerstone of financial reporting standards. Inadequate internal controls increase an organization's risk profile and are a significant concern for executive management. At Finnet, we understand the critical importance of robust internal controls. We strive to bridge the ‘Gap’ between Internal Control expectations and how they are actually implemented.

A ‘Gap’ Assessment focuses on the current level of design, the effectiveness of internal controls and processes, and conformance with the standards and best practices. It then offers recommendations for the remediation of identified gaps. It can also identify the efficiency and effectiveness of the processes and controls framework.

In our experience, there is always potential for significant gaps in internal controls. This is due to the continuous evolution and improvement of business models. Factors such as changes in the processes, shared service centers, the adoption of scalable enterprise software systems and advanced key performance indicators often render existing internal controls obsolete, necessitating a renewed focus on their effectiveness.

We assist clients by identifying and addressing these gaps in internal control expectations. When management has already recognized a gap, we provide further support by conducting review and testing of key business processes for design and operating effectiveness. This review offers reassurance on the effectiveness, efficiency, and continuity of key internal controls.