Internal control is often seen as a boring subject. It conjures up visions of bureaucracy, paperwork, inspection teams with checklists, things which slow the business down. But, as I have said elsewhere, “Saying that internal control is boring in business is like a train driver saying that tracks and signals are boring.”
Over the course of the “Purpose-Driven CFO” series I’ve been doing on LinkedIn, I’ve been looking at activities within the remit of the CFO from what I’m calling a “purpose-driven” perspective. I’m trying to investigate whether examining the reasons why we do things influences the way we do them. If you haven’t seen it already, please take a look at the introductory article that explains the thinking behind the approach: The Purpose-Driven CFO Part 1: Introduction. That, fittingly, tells you why I’m asking the ‘why’ questions!
With internal control, I can foresee that the number of clicks on the link at the bottom of this post will be fewer than for the other LinkedIn articles I’ve done.
So, to give you some reason to click, let me give you a summary of what I’m going to say.
I’m going to argue that internal control is very much part of business performance management. And therefore, internal control is something that Finance should be very interested in, because Finance exists to drive business performance. It also means that the detail of controls, internal audits, etc, should be carefully considered to ensure that they add value.
To see the full article, head over to LinkedIn: https://www.linkedin.com/pulse/purpose-driven-cfo-part-6-internal-control-finance-business-burrows.