In addition, many types of computer information can be protected through appropriate use of passwords. Independent checks on performance and proper valuation of recorded amounts. The underlying concepts of the control activities are also valid for small entities, although they may be less formal. Direct, hands-on involvement of management provides strong control over activities, lessening the need for more formal activities. Management's close involvement will often enable identification of significant variances from expectations and inaccuracies in financial or operating data.
Many small agencies have difficulty in obtaining an appropriate segregation of duties.
Whenever possible, duties should be assigned in such a way as to achieve the necessary checks and balances. When this is not possible, direct oversight of incompatible functions by management can provide the necessary control. For example, the manager may be the only authorized check signer and sign checks only after carefully reviewing the supporting documentation, or the manager may review bank reconciliations or require that monthly bank statements are delivered directly to the manager unopened.