Segregation of Duties
Salary & Bonus Approvals
Fraud Prevention Training
Risk Management Controls
Internal ControlsProcesses, procedures, automation and structures that are implemented to control an organization.
Segregation of DutiesAssigning authority for key tasks to different individuals so that no one individual has too much power.
Authorization ProceduresProcedures and systems for granting access to perform actions or access information.
Reconciliation ProcessesComparing records across different systems and records to ensure they match up.
Operational ControlsControls on the daily processes of an organization. For example, checking that stock in an inventory database is actually physically present on a shelf.
Purchase OrdersFormal requests for the purchase of goods and services.
Invoice ApprovalsApprovals for payments to vendors.
Expense ControlsPolicies, limits, reports and approvals for employee expenses.
Salary & Bonus ApprovalsReview and approvals of salary offers, salary increases and bonuses.
Inventory ManagementThe processes that track and optimize inventory levels.
Budget ProcessesBudget planning, approvals and tracking.
Budget OversightMonitoring of spending against approved budgets and management of variances.
Spending LimitsSetting limits for certain types of spending and monitoring for violations.
Fraud Prevention TrainingTraining employees to prevent, identify and report fraud.
Financial AuditsVerification of financial records and transactions to ensure accuracy and compliance.
Disciplinary ActionsTaking action to handle employee misconduct or policy violations.
Spending PoliciesEstablishing guidelines and rules for spending.
Access ControlsSystems and processes that prevent unauthorized access to systems and data.
Physical ControlsPhysical security measures such as secure storage of assets.
Procurement ProcessesProcesses for selecting vendors and purchasing.
Risk Management ControlsProcesses for identifying and controlling risk.
Contract AuditsEvaluation of contracts to ensure compliance.
Vendor AuditsAssessments of vendor performance, invoice accuracy and adherence to contractual obligations.
Compliance ProcessesProcesses for ensuring compliance to regulations, standards and internal policies.
Accounting StandardsAdopting an accounting standard with knowledgeable staff who are accountable and responsible for its implementation.
Financial StatementsExecutive leadership such as the CEO and CFO are accountable to deliver timely and accurate financial statements such as income statements, cash flow statements, balance sheets and statement of changes in equity.
Operating MetricsExecutive leadership such as the CEO, CFO and COO are accountable for delivering timely and accurate operating metrics such as profit margins.
PoliciesPolicies are in place in areas such as general ledger, chart of accounts, recognition of revenue, reconciliations, invoicing, payment processing, inventory and asset management. Knowledgeable accounting staff managed by the executive team are responsible for implementing policy.
ResponsibilitiesClear responsibilities such as a person who is responsible for sending account statements to customers each month.
ApprovalsApprovals processes such as CFO approval of major sales deals looking at factors such as gross margins.
Disbursement PoliciesValidation of disbursements such as checking that each payroll payment is to a bona fide employee.
Audit TrailAudit trails are created and retained for events such as approvals, financial transactions and updates to financial documents.
Information SecurityAccess to financial software and documentation is restricted to authorized personnel.
|Overview: Financial Controls|
Structures, processes, policies, procedures and automations that are used to implement financial management.