Preparer-Reviewer Workflow
Category
General Concepts
A preparer-reviewer workflow is a structured process in which one individual prepares an account reconciliation and a different, typically more senior individual reviews it for accuracy, completeness, and compliance with organizational standards. This two-step workflow is a fundamental internal control that ensures no single person can both create and approve a financial record.
Why it matters
The preparer-reviewer model is one of the most well-established internal controls in accounting. It implements separation of duties at the reconciliation level, ensuring that the person who performs the reconciliation work is not the same person who certifies its accuracy. This dual-control mechanism catches errors that the preparer may have missed, deters fraud by requiring a second set of eyes on every reconciliation, and provides documented evidence of review for auditors.
In practice, the workflow involves the preparer completing the reconciliation and submitting it for review. The reviewer examines the work, either approves it or returns it with comments for revision. If returned, the preparer addresses the reviewer's comments and resubmits. This cycle continues until the reviewer is satisfied and signs off.
The effectiveness of the preparer-reviewer workflow depends on the quality of the review. A rubber-stamp approval provides no value. Effective review involves examining the reconciliation methodology, testing the reasonableness of explanations for reconciling items, verifying that supporting documentation is adequate, and ensuring that tick marks indicate appropriate verification procedures were performed. The reviewer's expertise and the time they allocate to each review are the critical success factors.
At scale, enforcing the preparer-reviewer workflow requires dedicated workflow tools that automate routing, track status, and maintain complete documentation.
How Arvexi handles this
Arvexi's Workflow engine enforces the preparer-reviewer model with configurable assignment rules, automatic routing, and complete audit trail tracking. Reconciliations move through a defined lifecycle from preparation to review to final sign-off, with the platform preventing the same user from serving as both preparer and reviewer on the same account.
Cortex's confidence scoring enhances the review process by directing reviewer attention to the reconciliations most likely to contain issues. Low-confidence reconciliations are flagged with specific areas of concern, helping reviewers focus their examination on the elements that matter rather than performing a uniform review across all accounts. Review comments, revision history, and approval timestamps are captured in the work paper for a complete audit trail.