Controls for a Remote Workforce

With many employees working remotely, it is important to remember to maintain controls over processes.  The same principles still apply as the “old way.”  The responsibilities of authorizing transactions, recording transactions, and maintaing custody of assets should be separated to the furthest extent possible to reduce the risk of misstatement and fraud. 

Going remote increases the reliance on technology.  Make sure your controls cover any added risks associated with technology and  changes due to going remote.

• Many organizations utilize a cloud-based accounting system.  Require each user to have their own unique username and password.  Don’t share passwords. 
• Perform regular backups on your accounting system and other computer applications to prevent the loss of data.  May web-based products include frequent backups as part of the service but check to make sure.
• Use multi-factor authentication that requires multiple forms of verification to prove the user’s identity when logging into an application.
• Utilize your bank’s online bill pay service or Bill.com to eliminate the need for processing paper checks.  Make sure there is a process in place to add approved vendors, initiate the payment, and approve the payment.  For example, the bookkeeper could enter the bill, the CFO could approve the bill for payment, and the Executive Director could execute the payment.  Under no circumstances should only one individual be in control of setting up and executing payments. 
• Limit access to applications to only what is needed to do each person’s job. 
• Follow your document retention policy for maintaining supporting documentation.  Documents may be kept in paper or electronic format but your policy should include the method your organization has chosen, as well as how the documents are stored and destroyed. 

In deciding whether your controls are adequate, ask what could go wrong with how things are currently set up?  How are you going to address that risk? 

Contributed by: Carrie Minnich, CPA, MAcct | Director | DWD CPAs & Advisors