Review and authorization
Each entry is reviewed and authorized prior to
posting to the general ledger
Reviewer is independent of preparer
IT access to ensure segregation of duties
Access to the accounting system and records is restricted to only those individuals in the accounting team who post or review entries
Permission levels which allow only certain individuals to authorize entries
Built in capabilities which do not allow the same person to prepare and authorize a journal entry
Junior accountants often draft journal entries.
Your journal entries will be reviewed by your manager.
1 – Key control is the review – to make sure the entry is accurate, needs to be reviewed! This is the final control point in any process.
2 – IT access
-Restricts access to only those in finance / accounting
-Different access levels ensure only certain people can approve
-Most systems ensure that the same person who drafted cannot also approve