Continuous Controls Monitoring

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Continuous Controls Monitoring

The Trouble with Controls

The use of controls usually requires that a business incur extra expenses, or impose extra time requirements on a process. Alternatively, extra quality checks or audit procedures may be imposed. The result is a less efficient business that may be less profitable than might otherwise be the case.

Continuous Controls Monitoring

The cost and inefficiency of control systems can be mitigated by installing continuous controls monitoring (CCM) solutions. A CCM system automatically pulls certain data elements from a database of transactions and reviews all of these data elements. The intent is to conduct a complete scan of the data for control breaches, errors, possible segregation of duties problems, and anomalies from what is expected. The review is conducted by comparing the data to a set of tables that contain permitted transaction authorizations, allowable boundaries for detecting anomalies, itemizations of fields that must be completed for a standard transaction, and so forth. These tables are set up for each major transactional area, such as for inventory, payroll, accounts payable, travel and entertainment, and customer orders.

By comparing the tables to the data, a CCM can spot potential control problems, which are then reported to management on a real-time basis.

Here are several examples of CCM tests:

For the proper authorization of supplier invoices for payment
For the accuracy of inventory picking transactions
For the completeness of customer orders
For the issuance of customer invoices within __ hours of shipments to customers
For the authorization of credit memos related to unpaid customer invoices