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STRENGTHENING
ORGANIZATIONAL
INTEGRITY
THE VITAL ROLE OF
INTERNAL CONTROLS By-Abdullah Thawoos
INCOMBATING FRAUDIN
IN TODAY'S BUSINESS
ENVIRONMENT, FRAUD SEGREGATING DUTIES
CONTINUES TO BE By dividing tasks among different
A PERVASIVE ISSUE, individuals, internal controls prevent
IMPACTING ORGANIZATIONS any one person from having too
OF ALL SIZES. ROBUST much power or access to financial
ABDULLAH THAWOOS MUSTHAQ AHAMED ABDUL AADIL CLARA GINOSHI LILASHI CHANDRAKUMAR INTERNAL CONTROLS resources, making it harder to commit
President Vice President Secretary Vice Secretary Treasurer
ACT AS A VITAL and conceal fraudulent acts.
SAFEGUARD, PROMOTING
ACCOUNTABILITY, ENSURING COMPLIANCE WITHLAWS
ACCURACY, AND SECURITY AND REGULATIONS
WITHIN AN ORGANIZATION’S
OPERATIONS. THESE Strong internal controls help ensure
CONTROLS HELP PREVENT, that an organisation complies with
DETECT, AND RESPOND TO laws and regulations, reducing the
FRAUD IN SEVERAL KEY risk of penalties or legal action that
WAYS, UNDERSCORING could arise from fraudulent activities.
THEIR IMPORTANCE
IN MAINTAINING THE STRENGTHENING RISK
TRUST AND CREDIBILITY MANAGEMENT
OF BUSINESSES AND Internal controls help identify and
MURATH MANSOOR MOHAMED RASEEFU MUHAMMED WASEEM AAKASH FERNANDO SHASHINDINI UTHARALINGAM INSTITUTIONS. assess potential risks within
Member Member Member Member Member
an organisation, allowing for early
INTERNAL CONTROLS Intervention to prevent fraud and
HELP PREVENT, DETECT, protect resources from being
AND RESPOND TO compromised. REDUCING LOSSES
FRAUD IN SEVERAL KEY Effective internal controls minimize
WAYS, UNDERSCORING the financial losses that may result
THEIR IMPORTANCE DETERRING FRAUDULENT from fraudulent activities by quickly
IN MAINTAINING THE BEHAVIOUR detecting and addressing issues
TRUST AND CREDIBILITY The presence of internal controls acts before they escalate. In conclusion,
OF BUSINESSES AND as a deterrent to potential fraudsters, internal controls are essential for
INSTITUTIONS. as they know their actions will be protecting an organization from fraud.
closely monitored, making it less They provide the necessary systems
likely for them to attempt fraud. and processes to detect, prevent, and
MITIGATING HUMAN ERROR
"SUCCESS IS NOT FINAL, FAILURE IS NOT FATAL: Mitigating Human ErrorInternal PROMOTING ETHICAL CULTURE address fraudulent activities.
IT IS THE COURAGE TO CONTINUE THAT COUNTS." controls reduce the risk of Internal controls foster a culture In an era where fraud can occur at
any level, businesses must prioritize
fraud due to human error,
standardising procedures of ethical behaviour within internal controls to safeguard their
and ensuring that processes anorganization by setting clear assets, enhance transparency, and
– Winston Churchill – are followed correctly. Errors guidelines and expectations. maintain stakeholder trust. Without
can be flagged and corrected This ensures that employees them, the risk of fraud remains
before they lead to fraudulent understand the consequences a constant threat that could
outcomes. of fraud and misconduct. undermine an organization’s success.
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