Some people may disagree with this statement, but it is a fact.
Internal controls are the processes implemented by companies to ensure their objectives are met. They are the parts of the business process which provide mechanisms that could prevent inaccuracies or frauds, whether they were triggered by mistake or not.
In general, controls can be classified as preventive or detective. Preventive controls avoid things from happening, while detective controls identify things that have already happened. Clearly, preventing fraud or financial errors is better than discovering them after they have already occurred.
These prominent controls do not directly affect transactions and financial statements, but indirectly make them possible to rely on all the automated processes and controls built in a SAP environment. General controls typically consist of security and access controls, change management and operational controls.
Let´s discuss the different types of access controls
2. Automated monitoring: to identify errors, misuse of transactions, attempted use of unauthorized transactions, use of critical transactions and SOD conflicts.
Any of the controls mentioned above (preventive or detective) can be implemented in an efficient and effective way with the support of CentinelBox: a software tool that helps to identify risk. The benefit will come as the result of reducing errors and fraud.