Construction companies are often built from the ground up without much consideration for internal control. These companies are more likely to react to specific incidents, rather than proactively identify risks and implement controls to mitigate them. And for a management team without expertise in this area, internal control policies can seem inefficient or difficult to implement, which can lead to misstatements in finances due to fraud or error.

A good set of internal controls not only sets the tone for the organization, but also makes it more difficult for someone inside the company to commit fraud or theft.