RISK MANAGEMENT & INTERNAL CONTROLS
Financial Reporting and Regulatory Compliance are fundamental to maintaining transparency, accountability, and integrity in an organisation’s financial practices.
Financial reporting involves preparing accurate financial statements—such as balance sheets, income statements, and cash flow reports—that reflect a company’s performance and financial health.
Regulatory compliance ensures that these reports adhere to established standards, like Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS), and meet specific requirements set by governmental and industry regulators.
Together, these functions are vital for fostering stakeholder trust, providing investors with reliable information, and avoiding legal or financial penalties. For businesses, robust financial reporting and compliance practices not only enhance reputation but also support informed decision-making and sustainable growth
KEY POINTS
Risk Assessment: Identifying potential financial risks (e.g., market fluctuations, credit risk) that could impact the business and suggesting strategies to mitigate these risks.
Internal Control Design: Implementing systems that prevent unauthorised financial activities, fraud, or errors by monitoring key processes like cash handling and expense authorisation.
Fraud Detection and Prevention: Establishing measures to prevent and detect fraud, such as transaction monitoring and segregation of duties, reducing the risk of financial losses.
