- A limited number of employees have access to the control elements within the workflow. For example, in payroll, the person who write the checks are not the same person who signs the checks. When fewer people are involved, it’s easier to monitor actions and guard against irregularities.
- Making transactions transparent helps to increase efficiency.
- Well-balanced controls protect employees from accusations of irregularities or misappropriations of funds.
- You cannot guarantee employees will not try to override controls.
- Poorly planned or implemented controls creates frustration among employees, who may in turn, bypass the system.
- Rigid controls may restrict the company’s flexibility to make operational shifts as needed to stay effective.
Control Weaknesses You May Have
Reciprocity outlined four major internal control weaknesses that put your data at risk, including:
- Technical control weaknesses focuses on software and hardware.
- Operational control weaknesses result people not following policies and standards.
- Administrative control weakness are policies and procedures put in place to protect the company’s sensitive information.
- Architectural control weaknesses highlights and addresses risks in your company’s IT environment.