When cash flows are improperly monitored and adequate controls to prevent fraud and misstatements aren’t in place, there is a large amount of pervasive business risk. This process flow focuses on treasury and cash management and provides controls to mitigate risks.
Process risks covered in this sample process flow include:
- Money transfers not properly secured and inaccurately recorded
- Wire transactions in the wrong amount and transferred to the wrong bank account
- Inter-company transactions improperly recorded
- Disbursements of cash lacking proper approval and susceptible to theft
- New bank accounts not properly monitored and lacking proper approval to be opened
This document should be used as a general guide to understand and review this business process. Organizations should customize this tool to ensure that it reflects their business operations and continuously monitor the process to ensure that the steps described are accurate.