Fama Accounting Services, Office 2294, Building 574 Road 31 Block 611 Al Hamriya, Bahrain
Fama Accounting Services, Office 2294, Building 574 Road 31 Block 611 Al Hamriya, Bahrain
In today’s fast-moving business climate, weak internal controls can expose your organization to costly mistakes, fraud, and regulatory risk. Our Internal Controls Assessment Services in Bahrain help businesses design, evaluate, and optimize their internal control frameworks — ensuring operational efficiency, financial integrity, and compliance with local laws. Whether you’re a growing SME or a large enterprise, a strong internal control system is your first line of defense against risk.
We work closely with your management and finance teams to assess the reliability of your controls across finance, HR, procurement, operations, and IT systems. Our internal control assessments go beyond surface-level checks — we evaluate control design, implementation effectiveness, segregation of duties, policy compliance, and automation gaps. This helps you proactively detect and prevent errors, fraud, and inefficiencies that could otherwise go unnoticed.
Whether you’re preparing for an external audit, implementing ERP systems, undergoing leadership changes, or simply aiming to upgrade your governance, our Bahrain-based experts provide tailored, risk-aware internal control assessments aligned with international best practices (COSO, SOX, ISO 37301). We help you turn internal controls into a strategic advantage — not just a compliance obligation.
Internal controls are the processes, systems, and policies a company implements to:
Ensure accuracy of financial reporting
Prevent fraud and operational errors
Ensure regulatory compliance (VAT, labor laws, AML, etc.)
Safeguard company assets
Promote accountability and transparency
They include preventive, detective, and corrective controls across all departments — from how payments are approved, to who has system access, to how reconciliations are performed.
With the growing focus on transparency, compliance, and risk management in Bahrain, having robust internal controls is critical for:
💼 Preventing employee fraud or mismanagement
✅ Complying with LMRA, NBR, MOIC, CBB, and donor funding requirements
💸 Avoiding misstatements in VAT or financial reports
🧾 Improving audit readiness and confidence
💡 Supporting growth with scalable, risk-managed operations
👨⚖️ Enhancing stakeholder trust and board-level governance
Whether you’re regulated by CBB, serving government tenders, or scaling your operations — a strong internal control system is not optional.
Our internal controls assessment includes a full review of the following areas (customized per client):
Financial Controls: Payments, revenue, petty cash, accounting entries, reconciliations
Procurement Controls: Purchase requests, vendor approvals, invoice matching
HR & Payroll Controls: Contract approvals, payroll review, GOSI/LMRA integration
IT & System Controls: Access rights, data backup, ERP workflows, user monitoring
Compliance Controls: VAT invoicing, reporting timelines, legal documentation
Governance Controls: Delegation of authority, approval hierarchies, reporting lines
Fraud Prevention Controls: Red flag monitoring, whistleblower channels, exception reports
| Area | Control Strength | Findings | Risk Level |
|---|---|---|---|
| Vendor Payments | Weak | Duplicate approvals; no 3-way match | High |
| Payroll Disbursement | Moderate | Manual overrides not tracked | Moderate |
| System Access Controls | Strong | Role-based, audited quarterly | Low |
| VAT Reporting Process | Weak | No reconciliations with sales data | High |
Initial Discovery Session – Understand business structure, concerns, risks
Process Mapping – Document and map current control workflows
Control Design Review – Assess if controls exist and are well-designed
Control Testing – Evaluate effectiveness with data sampling and walkthroughs
Findings Report – Visual report with control gaps and risk level scoring
Recommendations – Tailored solutions and SOP enhancements
Implementation Support – Assistance with roll-out, policy drafting, and training
Optional Follow-Up Review – Measure progress 90–180 days later
You’re preparing for an audit or inspection
A fraud incident or process error has occurred
You’ve had a change in leadership or finance team
You’re adopting new accounting or ERP software
You’re expanding rapidly or entering a regulated sector
Investors or boards demand control documentation
You want to avoid future surprises or losses
📊 Corporates preparing for audits, IPOs, or investment
🏢 Family-owned businesses with informal processes
🏥 Healthcare, education, and service-based organizations
🧾 VAT-registered SMEs needing invoice controls and filing accuracy
🧮 NGOs and donor-funded entities requiring grant compliance
🏦 CBB-regulated firms under AML and governance scrutiny
📉 Reduce financial and operational risk
✅ Improve regulatory compliance (NBR, LMRA, MOIC, CBB)
🧠 Gain a clear map of who does what — and where gaps exist
🔒 Prevent fraud and misuse of company assets
🚀 Support efficient, scalable growth
🛡️ Strengthen management accountability and trust
Spotting control weaknesses early can protect your business from fraud, inefficiency, and compliance failures. Here are major signs your internal control environment needs urgent review:
If employees are unsure of procedures or rely on verbal instructions, inconsistencies and risk are high.
The same person handles purchasing, approving, and paying invoices — creating opportunity for manipulation.
No automation means higher risk of error, version control issues, and manipulation.
Frequent journal entries made outside standard workflows are often red flags.
If you can’t track who did what — it’s impossible to detect fraud or errors when they happen.
If the same issues appear across audits, internal control upgrades are long overdue.
This is one of the most abused areas — especially in smaller or cash-heavy businesses.
Internal finance process gaps often cause inaccurate or risky NBR filings.
Conflicts over “who should’ve signed what” often point to unclear roles and missing controls.
Consistent churn in these departments may signal cultural or ethical issues that merit a controls review.
1. What are internal controls in business?
Internal controls are processes and procedures designed to safeguard assets, ensure accuracy, and promote accountability.
2. Why are internal controls important for companies in Bahrain?
They help comply with NBR, MOIC, LMRA, CBB regulations, prevent fraud, and support effective operations.
3. What is an internal control assessment?
A structured review of your company’s internal processes, policies, systems, and controls to evaluate their effectiveness.
4. Who conducts these assessments?
Experienced internal auditors, accountants, or governance professionals.
5. Are internal control reviews only for large companies?
Not at all. Even SMEs benefit immensely — especially if they deal with cash, invoices, or external scrutiny.
6. How do you assess internal controls?
Through process mapping, control walkthroughs, risk scoring, document review, and stakeholder interviews.
7. What areas are typically reviewed?
Finance, payroll, procurement, HR, IT, governance, compliance, and operations.
8. What are preventive vs. detective controls?
Preventive controls stop issues (e.g. approval steps); detective controls uncover issues (e.g. reconciliations).
9. What if we don’t have formal SOPs?
That’s okay — we help you map and formalize your internal processes as part of the engagement.
10. Will this help us during external audits?
Absolutely. It prepares you to respond confidently to auditors or regulators.
11. What if control gaps are found?
We provide actionable recommendations, implementation support, and templates.
12. Is the review confidential?
Yes. All assessments are 100% private and bound by NDA.
13. Do you provide a report?
Yes — a full report including findings, risk ratings, and control maturity grading.
14. How long does an internal controls review take?
Between 3–15 days depending on business size and scope.
15. Can this help with VAT compliance?
Definitely. VAT invoice trails, reconciliations, and return processes are key control areas.
16. Do you check IT system controls too?
Yes. We assess user access, backups, password policies, and system audit logs.
17. What industries do you serve?
Finance, logistics, real estate, education, NGOs, hospitality, tech, and more.
18. Can you audit just one process or department?
Yes — e.g. just finance, or just procurement, depending on your need.
19. Do you offer implementation support post-review?
Yes. We can draft policies, train staff, and help monitor fixes.
20. Will this reduce my risk of fraud?
Yes. Strong controls are the most effective fraud prevention mechanism.
21. Is this the same as internal audit?
Similar, but more focused on control effectiveness than financial testing.
22. Can you help define roles/responsibilities in workflows?
Yes — we clarify roles, approval matrices, and process ownership.
23. What if we use accounting software like Zoho or QuickBooks?
We still review user access, data integrity, approval workflows, etc.
24. Will we receive control checklists?
Yes — we provide process-specific checklists and internal audit templates.
25. Can this help with board-level governance?
Yes — especially for family businesses or companies preparing for IPO.
26. What standards do you follow?
We follow COSO, COBIT (for IT), ISO 37301, and local best practices.
27. Is this useful for family-run businesses?
Very — especially where informal structures exist and oversight is limited.
28. What does a “maturity score” mean?
We assess whether your controls are Basic, Evolving, Mature, or Optimized.
29. Can this improve our credit or investor profile?
Yes — it shows risk-awareness and control-focused leadership.
30. Do you help NGOs comply with donor policies?
Yes — internal controls are often donor-mandated.
31. What happens after the report is delivered?
We can support implementation or schedule a review audit later.
32. Can we audit monthly, quarterly, or annually?
Yes — recurring internal control audits are common and effective.
33. Do you provide templates for documentation?
Yes. We share SOP outlines, approval matrix samples, and audit logs.
34. Will this expose fraud if it exists?
Yes — especially in procurement, cash handling, or payroll manipulation.
35. Can you support ERP implementation audits?
Yes — we ensure controls are mapped during new system adoption.
36. Do you work with startups?
Yes. We help startups create control environments from Day 1.
37. What are top risks if we don’t do this review?
Fraud, audit penalties, VAT filing errors, cash leakage, and lost accountability.
38. Do you provide certification?
Yes — a formal report with certification of control review is issued.
39. How do you determine high-risk areas?
Based on financial exposure, process weaknesses, and management input.
40. Can internal controls reduce VAT liabilities?
Yes — better processes lead to correct VAT treatment and avoid overpayment.
41. What kind of businesses do you work with most?
SMEs, corporates, family businesses, and regulated entities.
42. Can poor controls affect our valuation or exit strategy?
Yes — investors often discount companies with weak controls or informal operations.
43. Can you benchmark us against similar companies?
Yes — we provide control maturity benchmarks by industry and size.
44. What’s the difference between hard controls and soft controls?
Hard controls are procedural; soft controls relate to culture, tone at the top, and training.
45. How do we get started?
Just contact us — we’ll assess your needs and propose a tailored review.
After the assessment, we offer:
🧾 Internal SOP Development – Custom policies and procedure manuals
🎯 Corrective Action Plans (CAP) – With timelines and assigned responsibilities
📚 Staff Training – Finance, procurement, HR, compliance workshops
📊 KPI & Risk Dashboard Setup – Live reporting templates
🕵️ Internal Audit Setup – Monthly or quarterly internal audit programs
🧠 Governance Advisory – Structure boards, approval chains, and internal committees
🔍 Forensic Audit Referrals – If fraud is uncovered during assessment
📈 Control Maturity Mapping – Progress tracking over time
📝 Quarterly Review Audits – To maintain momentum and visibility
👥 External Auditor Liaison – Align internal controls with audit readiness
Minimize risks and maximize growth with our comprehensive accounting solutions in Bahrain.
Below is an overview of our general pricing packages for our suite of services in Bahrain. Costs vary depending on factors such as the services we offer.
Read some reviews and success stories from our loyal customers who achieved their goals and how our expert solutions have made a lasting impact on their growth, compliance, and financial clarity. Your success is our greatest achievement!
Client
I am so happy to have chosen this company! Right from the start it was a very easy decision, I knew I am in the right hands. They contacted me with every update they had and always kept me up to date with all the information and steps that we will proceed next.
Client
Highly recommend for anyone looking to establish a company in Bahrain! Waqas Akram and his team made the entire process smooth and stress-free. They were incredibly knowledgeable, responsive, and handled every detail with professionalism.
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The team was highly professional, efficient, and knowledgeable. They ensured that all paperwork and procedures were handled smoothly, saving us both time and effort. I highly recommend their services to anyone looking out there.
Client
Abdullah and the team have been great in assisting me with related tasks. In challenging timeframes they've supported me to ensure our company operations can start in Bahrain without any issues. Thank you. I will recommed their services.
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I was extremely impressed with their services. Their expertise made everything smooth and hassle-free. I highly recommend Setup in Bahrain for anyone looking for their business here. Their professionalism and commitment to customer satisfaction are top-notch.
With years of experience and a highly qualified team, we bring unmatched expertise and in-depth knowledge of Bahrain’s financial landscape to every service we provide.
Internal controls are generally categorized into three types: preventive, detective, and corrective controls. Each plays a distinct role in protecting your business and ensuring operational consistency.
Preventive Controls are implemented to stop errors or fraud before they happen. Examples include:
Role-based access to financial systems
Multi-level approval workflows for payments or procurement
Pre-set spending limits by department or user
Detective Controls are designed to identify issues after they occur, allowing for timely investigation. These include:
Bank reconciliations
Inventory audits
Expense review reports
Exception tracking in accounting software
Corrective Controls come into play when an issue has already occurred. They ensure it’s resolved and prevented from recurring. Examples:
Revising a flawed process after audit findings
Issuing refunds or accounting adjustments
Enforcing disciplinary measures for policy violations
An effective internal control environment uses all three types — working together to reduce risk, improve transparency, and support compliance across your organization.
In Bahrain, internal controls aren’t just about financial efficiency — they’re also essential for staying compliant with national regulations. Our internal controls assessment ensures your processes align with the requirements of:
NBR (National Bureau for Revenue): Proper VAT recording, invoice structure, and timely filings are mandatory. Weak internal processes can lead to NBR penalties, interest, or audits.
LMRA (Labour Market Regulatory Authority) and GOSI: Ensuring proper contracts, wages, and registration for employees to avoid labor law violations.
MOIC (Ministry of Industry & Commerce): Your business activity, licensing, and financial disclosures must be aligned and up to date.
CBB (Central Bank of Bahrain): For financial entities, controls around AML, KYC, and transaction reporting are legally required and audited annually.
By assessing your internal controls against these legal expectations, we help you proactively avoid compliance risks, fines, and disruptions to your operations.
When internal controls fail, the consequences can be costly — not just financially, but reputationally.
Example 1: VAT Filing Errors
A mid-sized trading company in Bahrain received a BHD 12,000 fine due to incorrect VAT filings over four quarters. The cause? Missing invoice documentation and lack of proper review controls.
Example 2: Procurement Fraud
An employee in a logistics firm created fake supplier profiles and approved payments to them. Without segregation of duties or vendor verification steps, the fraud continued unnoticed for 9 months, costing the company over BHD 35,000.
Example 3: Payroll Discrepancies
An NGO found that it was unknowingly overpaying salaries due to manual errors and lack of a second approval level for payroll processing.
Each of these cases could have been prevented with simple, well-designed internal controls. That’s why a timely internal controls assessment is one of the best investments for business continuity.
Internal controls are the systems, rules, and workflows your organization uses daily to prevent mistakes or misconduct. These include approval hierarchies, reconciliations, and restricted access to sensitive data.
Internal audit, on the other hand, is an independent review of how well those controls are working. It evaluates effectiveness, finds gaps, and recommends improvements. Think of it this way:
Internal controls = seatbelt
Internal audit = checking if you actually use the seatbelt, and if it works in a crash
Our service bridges both — we evaluate your internal controls from an audit perspective, giving you a clear roadmap for control enhancement and future audit readiness.
Every industry in Bahrain has different risk exposures — and a “one-size-fits-all” approach doesn’t work when it comes to internal controls.
Retail: Daily cash handling, stock theft, and refund fraud require tight cash register reconciliation and CCTV-supported inventory counts.
Hospitality: Service charge management, vendor contracts, and occupancy reports are high-risk areas where internal controls prevent misuse or leakage.
Healthcare & Education: Fee collection, insurance claims, grant usage, and licensing require detailed policy documentation and approvals.
Construction & Real Estate: Controls around subcontractor approvals, project-based budgeting, and tender compliance are vital to prevent cost overruns and compliance violations.
Finance & Fintech: AML, transaction monitoring, data access, and risk scoring systems require technical and regulatory control structures that are auditable and secure.
We tailor your internal controls framework to your sector’s unique challenges, ensuring you’re both compliant and operationally efficient.
Controls on paper mean nothing if the organizational culture doesn’t support them. A truly effective control environment includes:
Tone at the Top: Senior management must lead by example in following controls and not overriding them without documentation.
Defined Roles & Ownership: Every process should have a clear owner who is accountable for compliance and reporting.
Whistleblower Systems: Employees should feel safe reporting control violations or suspicious behavior.
Training & Awareness: From finance to sales, all departments must understand the “why” behind internal controls and how to follow them.
When accountability becomes part of your culture, your controls become self-sustaining and widely respected — rather than seen as bureaucratic hurdles.
Internal controls should integrate with — not sit outside — your financial software. Whether you’re using Zoho Books, QuickBooks, SAP, Tally, ERPNext, or Odoo, we review how your tech stack supports:
Role-Based Access: Are approval rights segregated by user level?
Audit Trails: Are transactions traceable to individuals?
Invoice Validation: Are expenses linked to approved purchase orders and delivery receipts?
VAT Settings: Are system configurations updated to Bahrain’s current VAT rules?
Document Locking: Are VAT returns locked after submission to avoid accidental changes?
We ensure your system doesn’t just record data — it becomes an active partner in enforcing internal controls.
| Week | Activities |
|---|---|
| Week 1 | Kickoff meeting, stakeholder interviews, process discovery, preliminary risk review |
| Week 2 | Process mapping, control walkthroughs, sample testing of transactions and documentation |
| Week 3 | Final analysis, scoring by control maturity, risk heatmap generation |
| Week 4 | Report presentation, action plan submission, discussion of corrective steps |
| Week 5–6 | (Optional) Support for SOP creation, staff training, software configuration audits |
| 3-Month Follow-Up | Progress review, update on CAPs, management coaching |
Upon completion of our internal control assessment, you’ll receive:
✅ A detailed control review report, including heatmaps and issue classifications
📄 A Certificate of Completion for governance committees, external auditors, or investors
📈 Documentation that helps with:
IPO readiness
Funding applications
Audit committee reporting
Tender eligibility
This documentation isn’t just for show — it proves to stakeholders that your business prioritizes governance, risk, and compliance, which can improve your reputation and valuation.
Ready to improve your company’s internal resilience?
We offer a free 30-minute discovery call, where we:
Review your business structure and current pain points
Share examples of common control weaknesses
Provide a quick health-check on risk areas
Recommend next steps, timelines, and deliverables
Whether you’re preparing for an external audit, dealing with VAT filing issues, or simply want more confidence in your operations — we’re here to help.
📩 Contact us now to book your consultation and receive a complimentary internal controls checklist tailored to Bahrain-based businesses.
Minimize risks and maximize growth with our comprehensive accounting solutions in Bahrain.
With a reputation for precision, and excellence, we are here to support your business growth while ensuring compliance with Bahrain’s financial and regulatory standards.
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