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.
Author: Rheya Patel, 2026 Social Media Committee Member As days become longer and the weather warms up, the first day of spring brings a sense of renewal and new beginnings. A time that feels more energizing and people are more motivated to reset their routines, look for new opportunities and clear away old habits. While spring is commonly associated with “spring cleaning” in the home, perhaps the same principal can be applies to the workplace. For organizations and HR groups, spring can be the perfect opportunity to encourage employees to reflect and construct new meaningful goals and “clean” out the “clutter” of goals that no longer help them grow or have already been achieved. Why is Spring the Perfect Time for Goal Setting? With the rush of returning to work after the holidays and resuming normal life, spring gives a perfect moment to pause and reflect. Employees can check on their progress, realign priorities and continue the year with renewed motivation. For HR teams, encouraging this reflection can re-engage employees and increase motivation. In turn, employees are more likely to be focused and productive while creating a space for meaningful conversations about growth, development, and career progression. How Can We Encourage Goal Reflection? Believe it or not, HR plays a crucial role in goal setting whether it is realized or not. Creating an open work environment where employees feel supported and encouraged with professional development is key in reflection and goal setting. Below are several ways organizations can use the season of renewal to inspire growth and goal setting. Encourage Reflection What accomplishments have employees made that they are proud of? What challenges have they faced? Asking these kind of questions and having one-on-one check-ins with employees can help support employees to openly discuss their goals and aspirations, and potentially create new goals. Promote Professional Development and Growth The arrival of spring can also create the chance to introduce new learning opportunities. Having a fresh mindset combined with training, workshops, mentorship initiatives, or skill-building programs, employees can feel more motivated and supported in pursuing growth. This helps employees expand their skillsets and strengthen the organization as a whole. Foster Collaboration and New Ideas Tying back to renewed energy, organizations can encourage teams to collaborate and share new ideas. Brainstorming sessions, innovation workshops, or team goal-setting can foster inspiration and connectivity, Having an open space for discussions can help teams align goals with organizational priorities to promote innovation and productivity. Celebrate Progress Recognizing progress along the way is essential. Celebrating achievements and acknowledging progress have a significant impact on employee morale. Employee recognition programs, team shoutouts, or words of appreciation can go a long way to remind employees how valuable their efforts and contributions are and continue to motivate them to strive towards their goals. Final Thoughts The arrival of spring represents renewal, growth, and new possibilities. For HR professionals, it’s also the opportunity to encourage employees to pause, reflect, and move through the rest of the year with renewed purpose. Encouraging goal setting, promoting professional development, fostering collaboration, and celebrating progress, can tie the season of newness to inspire meaningful growth. The new season reminds us that progress doesn’t need to start January 1st. Sometimes, a change in perspective, and a little springtime inspiration, can be the step towards pursuing new goals and growth with confidence.
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, have began delivery on the association's new strategic priorities developed in the 2026-2028 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 March 14, 2026 to review organizational performance, governance matters, and strategic priorities for the coming year. The Board’s key messages for the membership are as follows: Strong Association Performance in 2025 The Board reviewed the 2025 year-end financial statements and Q4 Management Discussion & Analysis. Key highlights include: 7,332 active members in 2025 (+409), a 6% year-over-year increase Student membership drove much of the growth, strengthening the profession’s long-term pipeline 76 professional development events delivered, reaching 7,000+ participants across Alberta 2025 CPHR Alberta Conference exceeded attendance targets with strong sponsor engagement 2026 conference outlook is strong, with sponsorship commitments nearing target levels The Board approved the 2025 audited financial statements, confirming the organization remains financially stable and well-positioned to support continued growth. Strengthening the Value of Recognition of the CPHR Designation The Board reviewed updates on thought leadership, marketing, and labour-market recognition of the designation. Key insights include that 52% of qualifying HR job postings now require or prefer a CPHR designation, demonstrating strong labour-market recognition. Strategic partnerships also continue to expand, including advancement in opportunities with the Academy to Innovate HR (AIHR). Marketing initiatives and industry engagement are focused on building awareness of the designation across employers and HR professionals. The Board remains focused on protecting and strengthening the credibility and value of the designation. Self-Regulation and Advocacy The Board discussed the current self-regulation review. Governance and Board Leadership The Board received updates from its committees and discussed key governance matters, including the Finance & Audit Committee’s oversight of audited financial statements and financial performance and the Governance Committee’s work on governance policy and board practices. The Human Resources Committee also provided updates on governance processes, including expressions of interest and board director voting results. The Board also reviewed board effectiveness practices, succession planning, and interest in the Vice-Chair role as part of ensuring strong leadership continuity. Looking Ahead The Board discussed priorities for the coming months, including: Preparation for the 2026 Annual General Meeting (May 7) Continued membership growth and engagement Delivering a successful 2026 CPHR Alberta Conference (June 2-3) The Board remains focused on supporting members, advancing the HR profession, and ensuring the organization remains strong and sustainable. The next Board meeting takes place in June 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!
The 2026 HRC West Case Competition, hosted by CPHR BC & Yukon and CPHR Alberta, concluded with outstanding student performances from across British Columbia and Alberta, showcasing the next generation of human resource professionals. The first-place team, ThriveSpire from Mount Royal University’s Bissett School of Business (Alberta), consisting of Nicole Sivertson, Brooke Jenkins, Jam Roda, and Gabrielle Vadnais, secured the $1,500 grand prize for their winning case presentation. Second place was awarded to HRInnovate from Bow Valley College (Alberta), followed by HRmony Solutions from Acsenda School of Management (British Columbia) in third and Innocore from Douglas College (British Columbia) in fourth place. This year’s competition featured 16 teams from post-secondary business schools across BC and Alberta. The exceptional quality of presentations reflected the passion, innovation, and practical expertise students will bring to the human resources profession as they begin their careers. CPHR BC & Yukon and CPHR Alberta extend their sincere thanks to all participating students, coaches, and judges for their dedication and contributions to the success of the event. Special appreciation is also extended to KPU’s Melville School of Business for hosting the 2026 HRC West Case Competition. Plans are already underway for the 2027 HRC West Case Competition, which will take place at Mount Royal University in Alberta on March 5 and 6, 2027. For more information visit: https://cphrbc.ca/hrc-west About the HRC West Case Competition The HRC West Case Competition is an annual student competition organized and co-hosted by CPHR BC & Yukon and CPHR Alberta, bringing together post-secondary students from across Western Canada to apply human resource theory to real-world business challenges while fostering professional growth, collaboration, and industry readiness. About CPHR BC & Yukon CPHR BC & Yukon is a non-profit organization dedicated to advancing the HR profession through education, advocacy, awareness, and professional development opportunities. Established in 1942, the association is the Voice of the HR Profession with a mandate to enhance the profession and advance member value. The organization provides leadership to more than 8,500 members and is both a founding member of the Chartered Professionals in Human Resources of Canada (CPHR Canada) and the exclusive grantor of the Chartered Professional in Human Resources (CPHR) designation in British Columbia and the Yukon. www.cphrbc.ca Media Contact: Quinne Davey Senior Member Relations Manager, CPHR BC & Yukon quinnedavey@cphrbc.ca 604-694-6943 www.cphrbc.ca
