Are there areas that keep you up at night because the segregation of duties or other internal controls are less than desired? Management should consider the use of various supplemental controls to compensate for certain factors that may be outside of management’s control.
Examples of supplemental controls a manager may consider include:
- Review detailed reports of transactions at a high-level periodically.
- Request and review supporting documents for a small sample of transactions to review adherence to documented procedures, processes and work flows.
- Perform unannounced high-level supervisory reviews of processes in certain higher-risk functions.
- Have employees in different units do high-level reviews of other unit’s adherence to documented procedures, processes and work flows.
- Implement supplemental transactional alert reports for higher risk areas that are to be provided to management.