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STRENGTHENING
THE VITAL ROLE OF
INTERNAL CONTROLS
INCOMBATING FRAUDIN
IN TODAY'S BUSINESS
ENVIRONMENT, FRAUD
CONTINUES TO BE
A PERVASIVE ISSUE,
IMPACTING ORGANIZATIONS
OF ALL SIZES. ROBUST
ABDULLAH THAWOOS MUSTHAQ AHAMED ABDUL AADIL CLARA GINOSHI LILASHI CHANDRAKUMAR INTERNAL CONTROLS
President Vice President Secretary Vice Secretary Treasurer
ACT AS A VITAL
SAFEGUARD, PROMOTING
ACCOUNTABILITY,
ACCURACY, AND SECURITY
WITHIN AN ORGANIZATION’S
OPERATIONS. THESE
CONTROLS HELP PREVENT,
DETECT, AND RESPOND TO
FRAUD IN SEVERAL KEY
WAYS, UNDERSCORING
THEIR IMPORTANCE
IN MAINTAINING THE
TRUST AND CREDIBILITY
OF BUSINESSES AND
MURATH MANSOOR MOHAMED RASEEFU MUHAMMED WASEEM AAKASH FERNANDO SHASHINDINI UTHARALINGAM INSTITUTIONS.
Member Member Member Member Member
INTERNAL CONTROLS
HELP PREVENT, DETECT,
AND RESPOND TO
FRAUD IN SEVERAL KEY
WAYS, UNDERSCORING
THEIR IMPORTANCE
IN MAINTAINING THE
TRUST AND CREDIBILITY
OF BUSINESSES AND
INSTITUTIONS.
MITIGATING HUMAN ERROR
"SUCCESS IS NOT FINAL, FAILURE IS NOT FATAL: Mitigating Human ErrorInternal
IT IS THE COURAGE TO CONTINUE THAT COUNTS."
fraud due to human error,
standardising procedures
and ensuring that processes
– Winston Churchill – are followed correctly. Errors
can be flagged and corrected
before they lead to fraudulent
outcomes.
ORGANIZATIONAL
INTEGRITY
By-Abdullah Thawoos
SEGREGATING DUTIES
By dividing tasks among different
individuals, internal controls prevent
any one person from having too
much power or access to financial
resources, making it harder to commit
and conceal fraudulent acts.
ENSURING COMPLIANCE WITHLAWS
AND REGULATIONS
Strong internal controls help ensure
that an organisation complies with
laws and regulations, reducing the
risk of penalties or legal action that
could arise from fraudulent activities.
STRENGTHENING RISK
MANAGEMENT
Internal controls help identify and
assess potential risks within
an organisation, allowing for early
Intervention to prevent fraud and
protect resources from being
compromised. REDUCING LOSSES
Effective internal controls minimize
the financial losses that may result
DETERRING FRAUDULENT from fraudulent activities by quickly
BEHAVIOUR detecting and addressing issues
The presence of internal controls acts before they escalate. In conclusion,
as a deterrent to potential fraudsters, internal controls are essential for
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
PROMOTING ETHICAL CULTURE address fraudulent activities.
controls reduce the risk of Internal controls foster a culture In an era where fraud can occur at
any level, businesses must prioritize
of ethical behaviour within internal controls to safeguard their
anorganization by setting clear assets, enhance transparency, and
guidelines and expectations. maintain stakeholder trust. Without
This ensures that employees them, the risk of fraud remains
understand the consequences a constant threat that could
of fraud and misconduct. undermine an organization’s success.
From Campus to Corporate Leadership l Aug/Sep 2025 l www.bimt.lk 110