Chapter 7
Taking Steps toward Better
Internal Controls
In This Chapter
Obtaining better internal controls
Discovering the advantages of automated controls
Putting automated controls into practice
A
lmost every problem that a company confronts can be traced back to
a lack of good internal controls. Good internal controls mean that you
know what is going on in the business, in every key business process. Strong
internal controls can also help you monitor and reduce risks. Internal controls
are really the essence of good governance, taking a policy and translating it
into the details of day-to-day business practices.In this chapter, we look at the importance of good internal controls and how
automating those controls can streamline your business and help you catch
the exceptions to the rule. Finally, we look at the SAP solution for automating
internal controls: SAP GRC Process Control.Understanding Internal Controls ...............................................................
Internal controls may mean different things to different people. To a clerk
in the purchasing department, having an internal control may mean double-
checking vendor invoices for inconsistencies; to a CEO, an internal control
may mean evolving a control policy to ensure effective overall governance.
Also, control owners and business process owners may find themselves at
loggerheads. A control owneris in charge of designing controls and making
sure they work properly to prevent problems. A business process owner, on
the other hand, is mainly concerned about running his or her department,
looking at the bottom line. If, for example, an employee is able to create a
vendor and pay a vendor, the control owner recognizes that this situation