Ice Miller LLP: Insights

Tim Belevetz Quoted in Washington Technology: "Early Lesson from NCI Breach: Double Check Financial Oversight"

Timothy Belevetz was quoted in the Washington Technology article, "Early Lesson from NCI Breach: Double Check Financial Oversight."

The article included:

In light of any breach, companies should be taking a look at their internal controls.

There are a number of examples of how companies can strengthen their internal controls, said Timothy Belevetz. One example is segregating duties with respect to the custody of assets. This way, no single individual should be in a position to both commit and conceal the fraud, Belevetz said.

Another example is to review and authorize expense reimbursements. "There should be a requirement to provide supporting documentation," he said.

A third example is the reconciliation of bank accounts, Belevetz said. "This identifies any discrepancies between the company’s cash balance according to its balance sheet and its bank statements. Again, there should be a separation of powers. Those who sign the checks or authorize electronic payments should not be those who do the reconciliations," he said.

Other examples include a fraud hotline, where employees can report misconduct anonymously, having an independent and empowered audit committee whose role is to direct, monitor and evaluate internal auditors, and conducting periodic fraud risk assessments, Belevetz said.

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