What is effectiveness in SAP FIN-CGV-MIC - Management of Internal Controls?

SAP Term: effectiveness

• Component: FIN-CGV-MIC

• Component Name: Management of Internal Controls

• Description: The effectiveness of a control is reviewed during testing.

Smart SAP Assistant

• Key Concepts: 
  Effectiveness is a term used in the Management of Internal Controls (FIN-CGV-MIC) component of SAP. It is a measure of how well a control is working to achieve its intended purpose. It is determined by assessing the control's design, implementation, and monitoring. 
  
  How to use it: 
  In order to measure effectiveness, users must first define the objectives of the control. This will help them determine what criteria should be used to assess the control's performance. Once the criteria have been established, users can then evaluate the control's design, implementation, and monitoring to determine its effectiveness. 
  
  Tips & Tricks: 
  When assessing effectiveness, it is important to consider both quantitative and qualitative measures. Quantitative measures such as cost savings or increased efficiency can be used to assess the control's performance, while qualitative measures such as customer satisfaction or employee morale can also be used. 
  
  Related Information: 
  The Management of Internal Controls (FIN-CGV-MIC) component of SAP provides users with tools to help them assess the effectiveness of their controls. These tools include risk assessment templates, audit reports, and control testing procedures. Additionally, users can use SAP's BusinessObjects software to create reports that provide detailed information about their controls' performance.