Internal Audit Services   An important component of any organization is a system of internal controls.  However, internal controls in many instances are the missing piece of the puzzle in an organization.  Also, the system can be poorly designed and thereby not work as intended.  Hilliard & Milton, LLC can assist you in establishing a system of internal controls and can provide ongoing testing of these controls to provide assurance they are in place and operating as designed.  This process is commonly referred to as internal auditing.   What is internal control?   Internal control is a process established by an organizations board of directors, management and other personnel. The process of internal controls is designed to provide reasonable assurance regarding the achievement of objectives in effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations.  Internal control is a continuous process and goes beyond documented policy manuals.  It is the actual process put in place by all individuals of an organization in their daily activities.   Hilliard & Milton, LLC focuses on identifying control objectives important to your organization, the underlying processes and transactions of your organization and the testing required to ensure the objectives are being met effectively.  In summary we.....   Identify the control objectives Document the processes in place Identify key controls Test the effectiveness of the key controls Make recommendations for improvement Upon the testing of the controls in place, a determination is made as to the operating effectiveness of the control as follows:   Effective (operating as designed) - No weakness identified in the control.  The control is operating as designed and mitigates its associated risk.   Inconsequential - A misstatement whereby a reasonable person would conclude, after considering the possibility of further undetected misstatements, would be immaterial to the financial statements both individually and in the aggregate.   Significant Deficiency - A control deficiency or combination thereof which adversely affects the ability to initiate, authorize, record, process, or report external financial data reliably in accordance with GAAP.  There is more than a remote likelihood a misstatement of the annual or interim financial statements that is more than inconsequential will not be prevented or detected.   Material Weakness - A significant deficiency, or combination thereof that results in more than a remote likelihood that a material misstatement of annual or interim financial statements will not be prevented or detected. Our team includes a Certified Internal Auditor designated by the Institute of Internal Auditors who will evaluate the adequacy, effectiveness, and efficiency of your system of internal control.