Management Services - Internal Controls

Consultants . Accountants . Auditors . Advisors . Attorneys

At Ladlas Prince, we focus more on the organization as a whole, and we call that the “Holistic Assessment, Holistic Approach (HAHA, but pronounce aha!).”

Enterprise Risks Management (ERM)

Risk management is an often misunderstood term, but the challenge is simple; businesses need to understand the risks they face and respond appropriately. While risk priorities vary by company size and industry sector, the following are some of the key issues.

How are you responding to risk issues?

Is your internal audit focusing on the right things or too bogged down in checking the boxes or lists?

The profile of the internal audit has never been higher than it is now, due to the following:

  • Key role in restoring confidence in financial reporting
  • Heavier compliance burden because of Sarbanes-Oxley and other regulations (for public companies)
  • More active Boards interest in financial and non-financial risks.

Are your Information Security controls an asset or a liability?

Evidence suggests that over 70% of US companies need to conduct "significant remediation" of Information Management & Security Systems and Controls.

Information Management Controls protect critical areas like intellectual property, customer and employee data/privacy, by ensuring the business has the right balance of confidentiality, integrity and availability.

Internal Controls Assessment and Reporting

Regulations vary a great deal around the world. However, there is a clear trend toward requiring greater transparency in financial reporting and more accountability to stakeholders coming from arms like the European Union’s Company Law Directives, the Sarbanes-Oxley Act in the US, and comparable initiatives in other jurisdictions. As management extension, we perform internal control assessment for both private or public organizations.

CEOs and CFOs of listed companies are being held more accountable for the integrity of their financial statements and the effectiveness of internal controls. Do not wait to become public or be held accountable; hold yourself accountable, because it is the right thing to do. It is great for your business, and you would have matured in doing so by the time you are ready for that jump from private to public.

ERM: do you have the strength of a holistic approach?

Many organizations have different approaches to risk across the organization, resulting in significant gaps and/or wasteful overlaps in their overall risk management. ERM can help create a global systematic approach to risk across the business.

Protecting your business includes investment in risk management. But how can you be sure you're seeing the full picture?

These are some of the important risk issues that our customers are seeking consultation on; the views of key stakeholders; sector insights, and how we are helping customers to tackle their challenges and opportunities in risk.

How are you responding to risk issues?

  • Tax risk

Tax directors and CFOs have to react to increased internal and external scrutiny, which brings about greater awareness of the need for tax risk management. This includes the overall management of the tax section, and its relation to the implementation of International Financial Reporting Standards, FAS 109, new internal control management and reporting standards such as SOX-404 and greater uncertainty over tax positions taken in the past.

  • Risk of corporate governance

Risk management is one element of good corporate governance. Refer to our corporate governance section and read more.

  • Fraud risk

White-collar crime and compliance missteps have become a lightning rod for governments, regulators, stakeholders, and the public. While fraud and corruption are facts of business life, there are steps a business can take to manage the risks and respond effectively.

  • Financial risk

Cash is king, and if liquidity is not managed properly, an enterprise is bound to fail. If left unchecked, financial risks related to cash flow, foreign exchange, interest rate changes and credit risk could ruin an otherwise solid business. To turn financial challenges into financial opportunities, businesses need to align the economic capital decisions to business objectives, and put the right financial models and performance goals in place.

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"Disclaimer: Ladlas Prince is management consulting company and not a law firm or a substitute for an attorney or law firm. While some of our team have legal background and are licensed attorney(ies), they work solely in a management consulting capacity as this is advantageous for our compliance work. Our management consulting work or product(s) and communication are not covered by the attorney-client privilege; only a non-disclosure where agreed upon. Ladlas Prince will forward legal advisory request to independent attorneys and firms at your specific request. We do not provide any kind of legal advice, opinion, or recommendation."