What is Maker-Checker Control?

Q: What is Maker-Checker Control?

Maker-Checker Control is an internal control process where one person initiates a transaction and another independently reviews and approves it before completion.

Definition

Maker-Checker Control is an internal control mechanism in which one individual (the “maker”) initiates or records a transaction, and a separate individual (the “checker”) reviews and approves it before it is finalized. This dual-review structure strengthens governance, reduces the risk of fraud, and enhances accuracy in financial and operational processes.

How Maker-Checker Control Works

Under a maker-checker model, responsibilities are divided to enforce Segregation of Duties (Fraud Control). The maker prepares the transaction—such as a payment, journal entry, or vendor update—while the checker independently verifies supporting documentation, compliance requirements, and policy adherence. Only after approval does the transaction proceed.

Transaction creation by the maker
Independent review by the checker
Approval, rejection, or request for correction
System-recorded audit trail for accountability

Role in Internal Control Frameworks

Maker-checker controls are fundamental to a broader Working Capital Control Framework and support effective Working Capital Control (Budget View) by preventing unauthorized disbursements or misstatements. In accounting, they function as both a Preventive Control (Journal Entry) and a Detective Control (Journal Entry), helping to reduce financial reporting errors.

Organizations often reinforce this structure with Role-Based Access Control (RBAC) and Access Control (Fraud Prevention) policies to ensure that system permissions align with assigned responsibilities. Advanced environments implement Continuous Control Monitoring (AI) or Continuous Control Monitoring (AI-Driven) to automatically detect anomalies and flag suspicious transactions in real time.

Compliance and Risk Management Benefits

Maker-checker controls are essential in regulatory compliance frameworks, including Anti-Money Laundering (AML) Control programs and financial governance standards. They are frequently evaluated through a Risk Control Self-Assessment (RCSA) process to ensure effectiveness and proper documentation. By separating initiation and approval duties, organizations reduce operational risk and improve audit readiness.

Summary

Maker-Checker Control is a dual-authorization mechanism that separates transaction creation from approval to strengthen oversight and reduce fraud risk. By integrating segregation of duties, access controls, and continuous monitoring, organizations enhance financial accuracy, compliance, and internal governance.