For companies, regardless of its size and nature, its internal control is one of the most important factor to ensure that risks are being managed. Perhaps, one of the pillars for internal control is the company’s ability to handle its documents through its document management system.
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The procedures for documentation details the required documents of the company. Although it is very obvious for small companies to necessitate less documentation compared to a major enterprise. An effective procedure that results can provide a competitive advantage to any trade.
Here’s the how documentation procedure contribute to a company’s internal control:
- Specification of job description of the management and personnel included in the company’s organizational chart.
- Documentation process which includes the implementing guidelines and procedures.
- The list of personnel who can take decisions and who can approve expenses.
- The requirement for supporting document to point the basis when a decision has been made.
- The reporting of the company’s key information.
- Verification of accuracy among data from various authors.