Spotlight on Documentation: Strengthening Compliance and Fraud Prevention
Maintaining supporting documentation is essential for daily compliance and fraud prevention. Well-defined documentation procedures, covering processes, decisions, and approval paths, reinforce internal controls and reduce the risk of errors or misuse.
Auditors routinely test these controls by reviewing systemic content and supporting materials to confirm that controls are operating effectively. They look for evidence that controls are actively in place and that more than one person is involved in reviewing transactions and processes.
Action Steps
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Identify a documentation plan in your department’s Internal Control Plan that defines how you will maintain records for both compliance and fraud prevention.
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Refer to Documentation Is the Cornerstone of Your Internal Controls to identify best practices, templates, and examples for staff.
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Integrate documentation requirements into your staff training so that maintaining supporting records becomes a regular part of daily operations.
Your Internal Control Officer (ICO) should review your written system of internal controls to ensure it is current and supports these training compliance goals. Your ICO can also help verify that the department head is accurately certifying compliance in the annual Internal Control Certification.
Bookmark our CTR Compliance Corner as your one-stop shop for alerts and success factors that you can integrate into your daily operations to keep you safe on your mission.