What Does Key Control Mean

A key control is an action your department takes to detect errors or fraud in its financial statements. Your department should already have key financial review and follow-up activities in place. To fulfill documentation requirements, departments should review those activities and identify key controls.

What are key controls in a process?

Key controls are those that must operate effectively to reduce the risk to an acceptable level. Secondary controls are those that help the process run smoothly but are not essential.

How do you determine if a control is a key control?

Conversely, a control is deemed key if it addresses a risk of material misstatement, a high risk, or both a control objective and an assertion. These controls must operate effectively to provide reasonable assurance that the risk of material errors will be prevented or timely detected.