FloQast, a provider of close management software for accountants, announced the release of Strict Tie-out Mode. The new control prevents sign-off on reconciliations that are not tied out, even if the source data changes after initial sign-off.
Strict Tie-out Mode is the latest addition to FloQast’s internal controls framework, Strict Suite Controls, which helps organizations enforce segregation of duties between preparers and reviewers and manage internal controls overall.
Strict Tie-out Mode augments other Strict Suite Controls to help organizations with increased compliance needs better address compliance requirements and improve close accuracy and accountability.
Unlike detective controls, Strict Tie-out Mode is a preventive control that blocks potential misrepresentations from creeping into financial statements before they occur. With Strict Tie-out mode, if a signed-off reconciliation falls materially out of balance, any current sign-offs are suspended, and assignees are notified that the account needs to be reviewed again, with new sign-offs required.
Additionally, a secure audit log is maintained so accounting team management and auditors have a complete record of all activity—including what changed, when it changed, and how the chain of sign-offs was affected.
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