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

SAP Term: nature of control

• Component: FIN-CGV-MIC

• Component Name: Management of Internal Controls

• Description: Attribute of a control that specifies whether the control is an approval procedure or an access restriction, for example.

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• Key Concepts: 
  Nature of control is a term used in the Management of Internal Controls (FIN-CGV-MIC) component of SAP. It is a classification system that helps to identify the type of control that is being used. It is used to categorize controls into three main categories: preventive, detective, and corrective. 
  
  How to use it: 
  The nature of control can be used to help identify the type of control that is being used in a particular situation. This can be done by looking at the characteristics of the control and determining which category it falls into. For example, if a control is designed to prevent an error from occurring, then it would be classified as a preventive control. 
  
  Tips & Tricks: 
  When using the nature of control classification system, it is important to remember that some controls may fall into more than one category. For example, a control may be both preventive and detective in nature. In these cases, it is important to consider all aspects of the control before making a final classification. 
  
  Related Information: 
  The nature of control classification system is closely related to the concept of internal controls. Internal controls are measures taken by an organization to ensure that its operations are conducted in an efficient and effective manner. The nature of control classification system can help organizations identify which type of internal controls are most appropriate for their particular situation.