Tag: DOA

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Compliance Tip of the Day

Compliance Tip of the Day – Top 4 Compliance Internal Controls

Welcome to “Compliance Tip of the Day,” the podcast that brings you daily insights and practical advice on navigating the ever-evolving landscape of compliance and regulatory requirements. Whether you’re a seasoned compliance professional or just starting your journey, our goal is to provide you with concise, actionable tips to help you stay ahead in your compliance efforts. Join us as we explore the latest industry trends, share best practices, and demystify complex compliance issues to keep your organization on the right side of the law. Tune in daily for your dose of compliance wisdom, and let’s make compliance a little less daunting, one tip at a time.

Today, we outline the top four internal compliance controls. They are:

i. DOA

ii. Vendor Master File

iii. Contracts with 3rd parties

iv. Distribution of Funds and Movements of Currency

For more information on this topic, refer to The Compliance Handbook: A Guide to Operationalizing Your Compliance Program, 6th edition, recently released by LexisNexis. It is available ⁠here⁠. 

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31 Days to More Effective Compliance Programs

One Month to More Effective Internal Controls – Discipline and Rigor In Your Internal Controls

New York Times columnist David Brooks’ thoughts on building and maintaining order inform the discussion on rigor in your internal controls. In internal controls, I believe it is incumbent to consider not only the most obvious risk areas for your internal controls but also the universe of potential transactions within a company’s operations. There is a clear need for rigor in your internal controls protocols. Adherence to that rigor can increase operationalization around the internal controls a company should consider, including gifts, travel, and entertainment expenses. Brooks said, “Building and maintaining order … requires toughness of mind and rigid discipline to serve your own work properly.” By having the rigor to institute and enforce the types of internal controls identified, you can go a long way toward detecting and, more importantly, preventing an FCPA violation from occurring.

Some of the key areas of Internal Control focus should be:

·       The Delegation of Authority (DOA)

Petty cash disbursements

·       Travel

·       P-Cards

·       Employee Expense Reports

·       Corporate checks and wire transfers, such as check requests, purchase orders, or vendor invoices.

·       Gifts and business entertainment

Three key takeaways:

1. You must maintain rigor around your internal controls.

2. Controls against fraud can also help to prevent corruption.

3. Building and maintaining good internal controls requires rigor.