1. makes each area manager responsible for documenting and evaluating financial controls in his or her own area. People closest to each business unit manage the data, which improves accuracy and completeness;
2. identifies areas with inadequate control measures so action plans can be initiated to resolve problems;
3. tracks the progress of outstanding action plans, describes who is responsible for those actions, and sets the expected time for resolution;
4. protects against fraud with systematic data management that ensures multiple reviews and verification;
5. raises the level and precision of reporting to management;
6. puts "localized knowledge" to work. Area managers become empowered to understand the impact of their roles on corporate results.
See also risk management.
| Enterprise Resource Planning (ERP) Software, Enterprise Resource Planning (ERP), Enterprise Fund | |
| Entertainment Expense Deduction, Entity Accounting, Entity Accounting: |
Dictionary of Accounting Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.
