Internal / Permanent Control
Activities Consultations
Internal Control Activities
- Internal controls are the processes and procedures designed to ensure reliability of operations, compliance, and safeguarding of assets
- Internal controls are the processes and procedures designed to ensure reliability of operations, compliance, and safeguarding of assets
Preventive Controls
- Segregation of duties (authorization, custody, recording)
- Pre-approvals (e.g., purchase requisitions, credit limits)
- Access controls (system permissions, password policies)
Detective Controls
- Reconciliations (bank, inventory, accounts)
- Exception reports and variance analysis
- Audit trails and activity logs
Corrective Controls
- Remediation steps based on identified issues
- System fixes, retraining, policy updates
Operation Control
- Focusing on effectiveness & efficiency of daily operation
- Performance review vs. production objectives
- KPIs review
- Workplace safety procedures
- Maintaining quality standards
Financial control
- Monthly banking reconciliation
- Expenses review
- Cash flow monitoring
- Accounts chart
- Supporting documents check
Typical Internal Control Activities by Process
Procurement & AP
- Vendor verification and master file controls
- Three-way match (PO–GRN–invoice)
- Approval matrix for purchases and payments
Sales & AR
- Credit approval controls
- Segregation between invoicing and collections
- Regular aging review and write-off authorizations
Inventory & Warehousing
- Cycle counts and physical inventory checks
- Access restrictions and CCTV monitoring
- Stock movement authorizations
Payroll & HR
- Formal onboarding/off boarding procedures
- Approval of overtime and incentives
- Payroll reconciliation to HR records
IT Controls
- User access management
- Backup and recovery controls
- Change management procedures
