Top Internal Control Weaknesses (And How to Fix Them)

Even well-run businesses have blind spots and internal control weaknesses are one of the most common. These gaps can lead to fraud, errors, lost revenue, or compliance issues if left unaddressed.

At MCAC, we work with businesses of all sizes to identify and fix weak points before they turn into bigger problems. Here are some of the most common internal control weaknesses we see and how to strengthen them.

1️⃣ Lack of Segregation of Duties

One person handles too much, from approval to execution. Fix it by separating roles, even if that means using software-based workflows or external reviewers.

2️⃣ No Consistent Review of Financial Reports

If no one regularly reviews key reports, mistakes go unnoticed. Schedule monthly financial reviews to catch errors early and improve decision-making.

3️⃣ Weak Access Controls

Too many employees have access to sensitive systems or accounts. Limit access to what's necessary and change passwords when roles change.

4️⃣ Missing Documentation and Policies

Without clear written policies, employees may not follow best practices. Create simple, documented procedures for things like reimbursements, purchases, and approvals.

5️⃣ Infrequent Reconciliation

Failing to reconcile bank or credit accounts regularly opens the door to missed transactions and fraud. Monthly reconciliation is a must, even for small teams.

Strong internal controls help prevent problems and make your business more resilient, organized, and valuable. MCAC can help you build or improve a system that fits your size and goals.

📞 Not sure where your weak spots are? Let’s take a look together.