Most internal control systems include independent reviews of performance and records to verify the control activities are being correctly followed

Key aspects of a performance review:

Done periodically, or by surprise

Done by someone who is independent of the control performer/employee responsible

Discrepancies and exceptions are reported to management

Action is taken as a result of identified discrepancies to remedy the situation

Well documented – signature and/or notes/conclusions

EXAMPLE: Sally periodically reviews the work performed by Mary.

As I’m sure you’ve seen in your experience, most organizations will have independent reviews as part of their system of internal controls

         Some key things to ensure these reviews are effective

-Done periodically or by surprise – if the performer knows when the review is he could do a very good job on that one item, but no on the rest

-Done by someone independent – back to the concept of segregation of duties

-Need to have action taken as a result of discrepancies

-And should document these – with signatures, notes, conclusion

Qs: If John performed the review – would that achieve the same result?

-Yes it would

-He knows the amount deposited and would see the difference between that and the sales journal

-John and Mary would need to collude to take any cash

As a junior member of the accounting/finance team usually your work will be reviewed by your manager or boss to ensure:

1.Your work is accurate

2.All documentation is complete, correct and organized

3.All issues that were identified were appropriately resolved

Take every opportunity you can to learn from your manager(s).

They have many years’ experience and can teach you a lot.

Their feedback will ensure you eventually become a manager (and are reviewing someone else’s work!)