Types of Internal Controls

Preventative Controls

Preventative controls protect the University by eliminating problems before they happen:

  • Segregation of duties
  • Proper authorization to prevent improper use of University resources
  • Enforcing clear recordkeeping and documentation procedures
  • Password and information protection

Detective Controls

When preventative controls fail, detective controls can be used to identify potential errors and problems. Best use of these controls is to gauge how effective your preventative controls are and strengthen them, if possible:

  • Reviewing financial statements for irregularities; at the manager, department and university level
  • Reviewing procurement card statements for appropriateness, allowability and/or proper allocation
  • Employing monitoring procedures, such as exception reports, analytical reviews and metrics monitoring