What is Dual Approval?

Definition

Dual Approval is a control mechanism requiring two authorized individuals to approve a financial transaction, contract, or payment before it is executed. This ensures accountability, reduces errors, and mitigates fraud or unauthorized activities within an organization’s financial operations.

Key Features

• Multi-Level Verification: Dual Approval is often part of a Multi-Level Approval Workflow to enforce layered checks on high-value or sensitive transactions.

• Payment Controls: Applied in Payment Approval Automation systems to ensure that disbursements are authorized by two independent parties.

• Procurement and Vendor Oversight: Embedded in the Procurement Approval Matrix and Vendor Approval Workflow to safeguard purchases and supplier payments.

• Expense and Contract Governance: Supports Expense Approval Workflow, Expense Approval Automation, and Contract Approval Workflow for operational compliance and audit readiness.

• Revenue and Journal Verification: Can be implemented in Revenue Approval Workflow and Journal Approval Workflow to confirm accuracy in financial reporting.

• Credit Authority Compliance: Integrates with Credit Approval Authority and Customer Credit Approval Automation processes to manage risk in customer transactions.

Summary

Dual Approval is a financial control requiring two independent approvals before executing transactions, contracts, or payments. By integrating it into payment, procurement, expense, and revenue workflows, organizations enhance accountability, reduce fraud risk, and maintain compliance.