Controlling is an important managerial function that helps minimize errors by setting standards, measuring performance, and taking corrective actions. A financial transaction control procedure detects and prevents errors, misappropriations, and non-compliance in financial transactions. It ensures resources are effectively collected, used, and accounted for. The strength of a control procedure depends on its objectives, the skills of those performing it, and separation of duties within the process. Well-managed financial controls and processes ensure transactions comply with standards and are appropriately recorded in a timely manner.

1. Financial Transaction Control
Process of

2. Controlling
• Controlling is one of the managerial functions like
planning, organizing, staffing and directing.
• It is an important function because it helps to check the
errors and to take the corrective action so that deviation
from standards are minimized and stated goals of the
organization are achieved in desired manner.
• It is a foreseeing action whereas earlier concept of
control was used only when errors were detected.
• control comprises three main activities:
 setting standards,
 measuring actual performance
 taking corrective action

3. Suzlon Energy
• Suzlon Energy is a global wind power company
based in India
• Conceived in 1995 with just 20 people
• Suzlon is a multinational company with offices,
R&D and technology centers, manufacturing
facilities and service support centers spread across
the globe.
• Suzlon delivers end-to-end wind power solutions
from assembly, installation to commissioning
• Suzlon operates the largest wind park in the world,
the 584 MW wind park in the Eastern Ghats-Tamil
Nadu.

4. What is a financial control?
• A financial transaction control is a procedure that
is intended to detect and/or prevent errors,
misappropriations, or policy non-compliance in a
financial transaction process.
• It ensures that resources are effectively collected
and used, and accurately accounted for.
• May be performed by either an individual or as
part of an automated process within a financial
system.

5. Financial transaction process stages
Entity set-up Transaction Transaction
review review verification
Post-
Balance
Reconciliation transaction
analysis
report review

6. Types of financial controls
• Transaction initiation review and
approval
• Asset receipt verification
• Post-transaction review
• Balance reconciliation
• Balance analysis

7. Transaction process risks
• Error in accounting classification
• Number or arithmetic error
• Unintentional asset misdirection error
• Misappropriation
• Fraud
• Regulatory, contractual, or policy non-
compliance

8. Control procedure strength levels
• The strength, or level of reliance, placed on a
financial control procedure in managing risks
depends on three key factors:
Quality Control objectives of the control
procedure
Skills, qualifications, and accountability of the
individual assigned to perform the procedure
Adequacy of separation of duties within the
process.

9. Procedure
Typical Attributes
Control
Strength Procedure Control Staff Skills and Separation
Quality Objective Qualifications of Duties
Strong knowledge
Complete, thorough and analytical
Strong Adequate
transaction review skills, and
experience
Complete, but Somewhat
cursory; or limited knowledgeable
scope, but thorough and experienced, Adequate
Moderate
transaction review with adequate
analytical skills
Cursory and/or Minimal
Weak limited scope knowledge,
transaction review experience and/or Inadequate
analytical skills

10. CONCLUSION
• A well-managed financial transaction process ensures that each
completed transaction complies with all of the seven transaction
control standards applicable to the process.
• Appropriate
• Valid
• Reasonable
• Funded
• Accurately recorded
• Supportable
• Timely recorded
• Well-managed units effectively balance operational efficiency
with the strategic deployment of financial controls.

11. REFERENCE
• WWW.WIKIPEDIA.COM
• WWW.GOOGLE.COM
• WWW.SUZLON.COM