Administrative controls are designed to promote operational efficiency and adherence to University policies and procedures. Accounting controls can be further categorized as either preventive controls or detective controls . Approvers should also understand what information is required to justify the transaction's correctness prior to approving it. Independent validation of transaction accuracy. Validation of transactions requires establishing controls to ensure that only valid transactions are recorded.
Reconciliations are also critical controls which ensure completeness and accuracy of transactions.
They are particularly important where stand alone subsystems exist. Reconciliations should be formal documents. They should also be reviewed and approved by department management. Adequate documentation of data allows accurate accounting and helps prevent errors. Certain documentation is also necessary for internal accounting control purposes, such as a complete and accurate description of the transaction, its authorization, and each consecutive operation.