Strong Internal Controls Make Good Business Sense
Internal controls are not just a box on a checklist; they are a trust-building tool.
When HR leads with transparency, integrity, and strong processes, it sends the message that the organization values trust and accountability. Internal controls can also protect against errors, fraud, and damage to its reputation. Internal controls support fair hiring, secure data management, and consistent documentation, helping HR stay aligned with laws, privacy standards, and compliance expectations.
What are internal controls?
Internal controls are an organization’s procedures, policies, and processes. They ensure:
- Compliance with laws, regulations, and policy
- Accuracy in reporting
- Overall efficiency and transparency in operations
Internal controls include setting out approval authority, role-based system access, audit trails, and segregation of duties. Once your controls are in place, continuous monitoring them further reduce risk by identifying issues early and providing timely feedback on areas where additional training may be needed.
Examples of HR internal controls and why an accountant might consider them important
Hiring
- Background checks ensure individuals hired to handle sensitive data don’t have histories of financial misconduct
- Signed employment agreements support key inputs into the payroll process and can serve as audit documentation
- Approval workflow for hiring decisions help prevent unauthorized payroll expenses
Payroll
- Segregation of duties between the person hiring and the person setting up payroll can prevent conflicts of interest and fraud
- Reconciliations of payroll reports with HR records help ensure records match the source data, which supports accurate financial reporting
Compensation
- An assignment of authority for employee events (e.g., salary change, promotions) ensures changes are authorized and reduces the risk of unauthorized payments
- Supervisor approval on timecards ensures information sent to payroll is accurate
Employee records
- Secure employee records ensure payroll, benefits, and compensation figures used in financial reporting are reliable and safe
- Tracking changes made to records provides a trail for internal and external auditors
Policy and compliance
- Key company policies requiring an employee’s signature can mitigate financial risks and ensure employees are expected to be aware of an organization’s policies
- A whistleblower policy provides a mechanism to uncover fraud or misappropriation of an organization’s assets
Access and data controls
- Role-based access to systems limits access to financial systems and reduces the risk of data manipulation
Monitoring controls
- Exception reporting (e.g., duplicate payments) supports quick identification of errors and accuracy of financial reporting
- Internal HR audits help ensure HR-related financial activities have proper controls and the controls are working as designed
By having an HR department that designs and implements internal controls, you are creating a stable system of checks and balances, minimizing risk in more ways than you might expect!
About the author:
Kristy Mielke CPA, CA fosters the professional growth of Alberta’s 32,000 Chartered Professional Accountants (CPAs) as the Director of Professional Development and Learning at CPA Alberta. She has previously worked in public practice and internal audit, and in addition to being a CPA, she is a Certified Internal Auditor and Certified Fraud Examiner.
The views and opinions expressed in this blog post belong solely to the original author(s) and do not necessarily represent the views and opinions of CPHR Alberta.
We’re excited to congratulate the CPHR Alberta 2025’s scholarship recipients! Each year, these awards help us recognize emerging HR talent and support students who are taking meaningful steps toward their future in the profession. CPHR Alberta scholarships play an important role in easing financial barriers, celebrating academic achievement, and connecting students with the professional community that will support them as they work toward earning the CPHR designation. Below, meet this year’s outstanding recipients. CPHR Alberta’s Eldon Emerson Scholarship: Undergraduate Award Created in 2021, the Eldon Emerson Scholarship honours Eldon’s exceptional leadership, contribution, and passion for the HR profession. Eldon received the Fellowship Award in 2013—one of the highest honours in our community, recognizing exemplary service and impact. 2025 Eldon Emerson Award Winner Chine Rajafa CPHR Alberta’s Diploma Scholarship: Undergraduate Award Launched in 2023, the Diploma Scholarship supports student members enrolled in a 2‑year HR diploma program. Recipients show strong academic performance, community involvement, and a clear commitment to the HR profession and the CPHR designation pathway. 2025 Diploma Scholarship Award Winner Mehar Kaur Follow Their Journey We encourage you to connect with Chinenye and Mehar on LinkedIn and support them as they begin their HR careers. A simple follow, message, or connection can go a long way for emerging professionals. Watch for 2026 Scholarship Dates The next intake period for CPHR Alberta’s Scholarship Program opens Fall 2026. Follow us on LinkedIn and Instagram for updates. Become a Student Member Whether you're studying in an accredited HR program or building your skills through part‑time, continuing education, or bridging programs, CPHR Alberta has a student membership option designed to support your path into the profession. Joining as a student member gives you access to resources, events, and a community that can help you take your next step with confidence. Learn more and join
Plan your 2026 professional development in advance and discover what CPHR Alberta has planned for you! Below is a brief overview of the programming coming your way in the months ahead. For full details, visit our new PD Calendar , and check your Member Portal regularly for updates. Signature Events Member Recognition Gala – April 30, 2026 | The Westin Airport Hotel, Calgary We invite you to an evening of celebration, connection, and inspiration. The Member Recognition Gala is a formal event honouring the individuals, teams, and projects shaping the future of HR across Alberta, the Northwest Territories, and Nunavut. Inspired by the Aurora Borealis, this redesigned experience replaces traditional awards with Spotlights—a meaningful way to recognize excellence in action. Tickets will go on sale soon. CPHR Alberta 2026 Conference: Future-Ready HR – June 2–3, 2026 | BMO Centre, Calgary Our 2026 Conference prepares human resources (HR) professionals to master the fundamentals, embrace innovation, and build executive-level influence—creating agile organizations ready for economic and workforce change. A future-ready HR community. Registration will be opening soon. Chapter Community Events | Throughout 2026 We’ll be visiting all chapters across the year with popular community events in your region. Stay tuned for event announcements and details. Stampede Breakfast | July | Calgary, AB A member favourite breakfast event is returning! Join us to mingle, connect, and enjoy the energy of Stampede. More information will be shared soon. Certificates Workplace Investigations Training | February 17–19 and March 17–19 Presented in partnership with Veritas Solutions. The Workplace Investigations Certificate is a three‑day program focusing on three core training topics. Participants may register for the full program or select stand‑alone courses. A certificate is awarded upon completion, and no prerequisites are required. Webinars Networking at Noon Join us for one hour each month to explore current and emerging HR topics. With a new focus every session, you'll leave with thought‑provoking questions and earn 1 CPD hour. On February 12, join us for HR Trends & Priorities for 2026. International Women’s Day National Event Join us on March 4 from 10:00–11:30 a.m. for a special fireside chat with Layne the Auctionista and Sheena Russell, founder of Made with Local . This national celebration of International Women’s Day explores the theme “Give to Gain,” highlighting how generosity and purpose‑driven leadership can shape meaningful careers. You’ll hear real stories, bold insights, and practical inspiration you can take back to your HR practice. Details ®gistration: https://cphrns.ca/events/EventDetails.aspx?id=2018615&group= Virtual Sessions for Students Students can expect two sessions each month: one dedicated to building skills one offering practical advice from HR professionals in the field These sessions are complimentary for Student Members. Are you interested in becoming a member? Students receive complimentary membership. Learn more: www.cphrab.ca/student-programs Other Events DisruptHR YYC 13.0 will take place in October. More details will be shared in late summer. Plan Your Year With Us Explore the full list of programs and events on our 2026 PD Calendar.
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