What is Coding Review?
Definition
Coding Review is the systematic evaluation of financial transaction coding to ensure accuracy, compliance, and alignment with internal policies and accounting standards. It involves assessing coding decisions, identifying errors, and recommending corrective actions to maintain reliable financial reporting.
Purpose and Scope
The primary purpose of a Coding Review is to strengthen financial controls, enhance reporting accuracy, and support governance initiatives. Coding reviews are often integrated with broader financial assessments such as Coding Quality Review, Analytical Review (Journal Entries), and Working Capital Performance Review. They also support internal and external reporting processes including Cash Flow Statement Review and Quarterly Business Review (QBR).
For example, a $4.2M intercompany transaction may be evaluated for proper coding against Master Data Dependency (Coding) and compliance with Segregation of Duties (Coding) to ensure accuracy and proper approval documentation.
Key Activities in Coding Review
Verification of coding accuracy and adherence to accounting policies
Assessment of intercompany and vendor transaction coding, including Intercompany Counterparty Coding
Evaluation of monthly and quarterly reporting through Monthly Business Review (MBR) and Quarterly Business Review (QBR)
Review of user access controls and system permissions through User Access Review (Data)
Integration with Implementation Compliance Review to ensure process updates follow governance standards
Benefits
Improves accuracy and reliability of financial reporting
Supports compliance with internal control frameworks and accounting policies
Identifies coding errors and control gaps for timely corrective action
Enhances audit readiness and governance transparency
Drives continuous improvement in coding processes and workflow efficiency
Summary
Coding Review systematically evaluates financial transaction coding to ensure accuracy, compliance, and effective governance. By integrating with analytical reviews, business performance assessments, and intercompany coding checks, it enhances reporting reliability and supports internal control and audit readiness.