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.
As the governing voice of CPHR Alberta, the Board of Directors meets quarterly to provide oversight and guidance in several key areas. The Board, alongside CPHR Alberta operations, continues to deliver on the association's strategic priorities developed in the 2020 strategic plan. To ensure transparency between our Board of Directors, members and key stakeholders, we are sharing post-meeting messages to inform the steps taken towards advancing our profession and ensuring a financially stable association. The Board of Directors met on November 27, 2025, and is proud to share the strong momentum we are experiencing across our community. The Board’s key messages are as follows: Membership Growth As of September 30, 2025, we reached 7,213 active members, a 7% year-over-year increase, with the majority coming from student and emerging HR professionals. This growth affirms the momentum of our HR profession and the impact of our student engagement initiatives. Professional Development Member participation remains strong with 53 events held year-to-date, with 5,013 attendees across workshops, roundtables, webinars, and community sessions. Our complimentary events have played a key role in sustaining engagement and access to learning. Annual Conference The Annual Conference was a heavy focus for the association in Q3. The sold-out event continues to bring together our community for valuable professional development and networking opportunities, creating a strong foundation for 2026. Attendees reported high satisfaction, with over 370 in attendance, and a sold-out exhibitor hall. “The CPHR conference was incredibly educational and inspiring. The speakers motivated me, and it was an experience I’ll never forget. I really enjoyed it, grew closer to my team, and I definitely want to attend again.” – 2025 Conference Attendee The 2026 event will be held at the BMO Centre, in Calgary on June 2 and 3 – with increased capacity, expanded exhibitor space, and enhanced programming will elevate the experience for all HR professionals across Alberta, NWT and Nunavut. Self-Regulation The Board continues to assess the implications of Alberta’s Professional Governance Act (PGA), including: Advocacy, legal, and governance impact assessments are being commissioned. Preliminary recommendations from management will be brought to the Board in March and June 2026, leading to a formal decision. Further information will be shared, when ready. Future Vision Approved: 2026-2028 Strategic Plan Our new 2026–2028 Strategic Plan will be rolled out in December to all members. The 3-year Strategic Plan, crafted from member feedback, market research, and collaboration with CPHR Canada – aims to strengthen our profession’s influence, amplifies leadership, and creates pathways for all members to thrive. Fiscal Responsibility Our Q3 financial review remains on track for a balanced year-end forecast. The 2026 draft budget has been approved – aligning resources with our strategic priorities while maintaining a disciplined and responsible financial approach. Board Governance Our board continues to focus on good governance practice, ensure stability, clarity, and accountability across our organization. FCPHR Nominations A reminder that the prestigious Fellowship Award is open for nominations! This national program recognizes Chartered Professionals in Human Resources (CPHRs) who have made exemplary contributions to the HR profession. Recipients are granted recognition as a Fellow of the Chartered Professionals in Human Resources (FCPHR). Click here to learn more about the Fellowship Award, including the guidelines and completing your nomination. You can also download a copy of the nomination form here. The next Board meeting takes place in March 2026, after which we will again share our key messages. If you have any questions regarding these key messages or the Board of Directors, please contact chair@cphrab.ca . We welcome your feedback!
At CPHR Alberta, we believe that the future of work is being shaped by the decisions we make today. That’s why we’re proud to share our 2026-2028 Strategic Plan—a bold, member-informed roadmap that will guide our organization over the next three years. This plan is the result of a deeply collaborative process, led by our Board of Directors and developed in partnership with our operations team. It reflects the voices of our members, gathered through surveys and conversations, and is grounded in market research and aligned with the national priorities of CPHR Canada. Together, we’ve crafted a strategy that is responsive, forward-looking, and rooted in data. At its core, the plan is about strengthening the Human Resources profession and supporting the people who drive it. It reaffirms our commitment to building a resilient, inclusive HR community—one that is equipped to lead in a rapidly evolving workplace landscape. Our redefined vision and mission statements speak to this ambition, and our newly articulated values provide a foundation for how we work, connect, and grow. The strategic priorities outlined in the plan reflect the areas where we believe CPHR Alberta can make the greatest impact. They focus on elevating the visibility and influence of the HR profession, fostering innovation and leadership across our community, and deepening engagement with our members and partners. These priorities are designed to meet the diverse needs of our jurisdiction, from urban centers to rural communities, and to ensure that every CPHR has the tools and support to thrive. As we look ahead, we’re energized by the possibilities this plan unlocks. It’s a call to action—for our team, our Board, and our members—to work together in shaping the future of HR. Whether it’s through new learning opportunities, stronger regional connections, or amplifying the voice of HR in public discourse, we’re committed to leading with purpose and impact. We invite you to explore the full 2026-2028 Strategic Plan and see how our shared vision will come to life. Together, we’re building a future-ready HR community—one that’s connected, influential, and prepared to meet the challenges of tomorrow.
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