Automated Control Audits: Mitigating Process Risks

Finance and Accounting (F&A) functions are entering a new era of process efficiency and risk management. Automated controls within accounting and transaction-recording systems are proving to be a game-changer, helping organizations identify and address risks before they materialize.

The evolution is paralleled to the automobile industry: from brakes being manual to completely independent and safety-oriented, accuracy-driven, and efficiency-oriented autonomous systems. In F&A automated controls are shifting the focal point of risk mitigation toward proactivity rather than reactivity, ensuring smooth flows of operations and robust governance systems.

‍

The Growing Role of Automated Controls in Financial Process Automation

Automated controls are embedded mechanisms within applications or interfaces that enforce rules or validations to reduce risks such as fraud, human error, and misjudgment. Such tools enhance process efficiency, accuracy, and compliance and reduce reliance on manual interventions.

Key benefits of automated controls include:

Fraud Mitigation: Segregation of duties and enforcement of adherence to financial delegation rules in order to prevent unauthorized activities.

-  Process Efficiency: Removing manual checks, including maker-checker validations, to allow for straight-through processing.  

- Cost-Effective Audits: Reducing audit costs by testing only minimal samples of automated transactions.  

-  Regulatory Compliance: Simplifying compliance with regulations such as Sarbanes-Oxley and data security standards through rigorous controls.  

‍

How Automated Controls Impact Risk Management in Finance

Every F&A process has risks with varying probabilities and impacts. Automated controls address rule-based risks, thus enabling proactive mitigation and faster transaction processing.

For example, consider vendor payment errors. Mismatches between contracted and invoiced prices are common. Automated systems can flag discrepancies before payments are processed, thus saving organizations from potential losses.

The proactive nature of automated controls accelerates transactions and enhances accuracy, making them indispensable in today’s fast-paced business environment.  

‍

Why ERP Alone May Not Be Enough  

While advanced ERP systems have basic automated controls, they are often limited in scope. Organizations can strengthen these systems by adopting bolt-on automated control tools, which enhance efficiency and compliance.

A four-stage process will be beneficial in the implementation of strong automated controls by businesses: 

1. Identify risks amenable to rule-based financial risk mitigation tools. 

2. Develop or enhance automated tools to address these risks. 

3. Integrate controls into existing workflows. 

4. Continuously monitor and optimize controls for evolving needs.

In today's resource-constrained business environment, F&A teams are expected to do more with less and maintain high governance standards. Judiciously selected automated controls can: Extend the bandwidth of finance teams by reducing manual interventions Enhance governance through proactive risk management Enable faster and more accurate transaction processing.

With mitigated rule-based risks, the focus is redirected to the areas requiring human expertise such as subtle financial analysis or strategic decision-making.

‍

Why Choose One Point One Solutions for Finance & Accounting Controls Automation

One Point One Solutions has customised automated control tools designed to transform your F&A processes. With deep expertise in risk management and process automation, we help businesses:

- Reduce risks and enhance compliance.  

- Minimize manual effort and associated errors.  

- Drive efficiency with streamlined, rule-based workflows.  

- Save on audit and operational costs with proactive controls.  

Our solutions are tailored to your unique needs, ensuring scalable and sustainable outcomes.  

‍

Optimize Your Finance Operations with Automated Controls

Businesses face growing pressure to enhance efficiency and minimize risks. This makes automated controls an alluring solution. Automated controls can allow organizations to maintain proactive risk management and improved accuracy and ensure the leading position in the landscape of competition.

Transform your finance operations with One Point One Solutions. Discover how our automated controls can empower your business with better processes, stricter governance, and minimal human intervention.

‍