Exploring the Manual Control Performance

Explaining the concept of manual controls we have to go deeper into manual control performance which is an assignment which can be activated in the planner app which is explained in the Unit Identifying the Key Capability: Plan.

Manual control performance is a process to perform controls manually, which involves a control performance plan that defines the detailed steps the control to be performed by control performers. You can add control performance steps to any control (central and local) and create a plan for manual control performance. You can also add multiple step performer, which first needs to be set up in the customizing.

Step 1 - Create control performance plan

The control performance plan is documented within the central control by the internal control manager. The control is then mapped to the organization and made available as a local control. Alternatively, the performance plan can be maintained solely at the local level after the control is assigned to the organization.

During the creation of the control performance plan, whether local or central, specific information is required, such as the sequence, which establishes the order in which steps must be executed. It is important to note that subsequent steps will not become accessible until the preceding step is successfully completed. Additionally, each step can be set with a specified duration, indicating the number of days within which the step should be accomplished by the performer. This feature is crucial for monitoring and reviewing steps that are approaching their respective deadlines.

It is also important to note that multiple control performers can be assigned to one performance plan.

Step 2- Plan control performance

In the "Planner" application the internal control manager can plan the activity "manual control performance". This step refers to Unit "Identifying the Key Capability: "Plan".

Step 3 - Perform control

Upon triggering the workflow, the relevant control performer receives a work item in their work inbox. During the step performance process, if the owner has identified an issue, it can be directly reported as an Issue for further remediation process.

Step 4 - Review control performance

After completing the control performance, including providing comments and evidence as outlined during setup, the results are submitted. The control owner then reviews these results and has the option to either reject the workflow, returning it to the performer for further action (Step 3), or approve the control performance which ends the workflows ends.

Note, that this step can be disabled in the customizing.

Let see how manual control performance will be processed by Ian (Internal Control Manager), Mae (Control Performer), and Brian (Control Owner).

Ian Robb, the Internal Control Manager, developed a control performance plan for the "Vendor Statements to Account Payable" (local) control. He navigates through the organizational hierarchy of CRG International, Inc. and selects the organization "General Accounting."

He then chooses subprocess and goes into the subprocess "AP Invoicing" to access the control "Vendor Statements to Account Payable." He starts to create a performance plan with the following steps:

Step 1: Gather vendor statements.

This means collecting financial or transactional documents from vendors. These statements typically include details of purchases, payments, credits, and other transactions between the vendor and your organization.

Step 2: Compare with vendor balance details.

This involves cross-checking the information on the vendor statements against your internal records of what you owe the vendor. The goal is to ensure that both sets of records match and that all transactions, payments, and credits are accurately recorded.

He decides that no evidence or comments are required and assigns Mae as the Step Performer.

He implements and activates the manual control performance workflow in the Planner application, which will not be shown in the demo. See the Unit "Identifying the Key Capability: Plan" to learn how a workflow can be activated.

His goal is to establish a specific process for verifying the accuracy and completeness of vendor statements compared to the accounts payable records. This is crucial for avoiding discrepancies and errors in the payment and recording of vendor invoices.

Mae Wong as Control Performer is responsible for control Accounts Payable Invoicing. When she receives an item in her work inbox, she follows a set of performance steps. First, she gathers vendor statements to ensure accurate and up-to-date recording of invoices and payments in the system, marking the task as done once completed. Next, she compares the vendor balance details to the actual financial transactions and records to prevent any errors or discrepancies, also marking this task as done once completed.

Once Mae completes her assessment, Brian as Control Owner will revue the control performance.

Brian Kenny as Control Owner for Accounts Payable Invoicing reviews the manual control performance. He goes through the performance plan and sees nothing remarkable.

He writes an comment as approved and set the status of approved to end the manual control performance processes.