What are Maker Checker Controls?
Definition
Maker Checker Controls are finance and compliance controls where one person creates or initiates a transaction, record, change, or approval request, and another independent person reviews and approves it before it becomes final. The “maker” prepares the item, while the “checker” validates accuracy, completeness, authorization, evidence, and policy alignment.
In finance operations, Maker-Checker Control is used to strengthen accountability across payments, journals, reconciliations, vendor changes, bank updates, tax submissions, and reporting activities. It supports reliable financial reporting by ensuring that important finance actions are not completed by only one person from start to finish.
How Maker Checker Controls Work
The control starts when the maker creates an item such as a journal entry, supplier master change, payment file, reconciliation, invoice approval, or tax adjustment. The item is then routed to a checker who independently reviews the details before approval. The checker may validate account coding, transaction value, supporting evidence, approval authority, policy compliance, and close-period accuracy.
For example, in a payment run, the maker may prepare the payment batch and attach invoices, purchase orders, bank details, and approval evidence. The checker then confirms that the payment is valid, properly authorized, and aligned with Treasury Internal Controls before release. This creates a clear separation between preparation and approval.
Core Components
A strong maker checker model clearly defines roles, review rules, approval thresholds, and evidence requirements. It should explain who can create an item, who can approve it, what must be checked, and what documentation must be retained.
Maker role: Creates, enters, uploads, or submits the finance item for review.
Checker role: Reviews the item independently and approves, rejects, or requests correction.
Approval threshold: Defines when additional review is required based on value, risk, entity, or transaction type.
Evidence standard: Specifies required support such as invoices, schedules, contracts, reports, or reconciliations.
Audit trail: Records who created, reviewed, approved, changed, or rejected the item.
Where They Are Used in Finance
Maker checker controls are common in journal entry approval, payment approvals, vendor master changes, bank account changes, reconciliation certification, and close sign-offs. They are especially important where a transaction can affect cash, expenses, liabilities, revenue, taxes, or management reporting.
They also support Internal Controls over Financial Reporting (ICFR) because they create documented evidence that key finance activities were reviewed before posting or reporting. In technology-enabled finance environments, maker checker logic may be part of IT General Controls (ITGC), user access reviews, configuration changes, and Financial Reporting Data Controls that protect reporting accuracy.
Key Metrics
Maker checker controls can be measured through coverage, timeliness, and exception metrics. These help finance leaders understand whether key activities are receiving proper review before completion.
Maker checker coverage = Items with independent checker approval ÷ Total control-relevant items × 100
Checker exception rate = Items rejected or returned by checker ÷ Items submitted for checking × 100
For example, assume a finance team processed 1,200 control-relevant items in a month. If 1,176 items had independent checker approval, maker checker coverage is 1,176 ÷ 1,200 × 100 = 98%. If 72 items were returned for correction, the checker exception rate is 72 ÷ 1,200 × 100 = 6%. These metrics help controllers assess review discipline, evidence quality, and approval consistency.
Control Areas and Practical Examples
In accounts payable, maker checker controls help validate supplier invoices, payment batches, bank details, and approval limits. In the general ledger, they help review journal amounts, posting periods, account codes, and supporting schedules. In tax, Tax Internal Controls may require one team member to prepare tax entries or filings and another to validate calculations, documentation, and approval status.
Maker checker controls also apply to Expense System Controls, where expense claims, policy exceptions, reimbursements, and employee payment details require independent review. During finance transformation, Data Conversion Controls may use maker checker review to confirm that migrated balances, mapping files, and validation reports are checked before go-live.
Best Practices
Effective maker checker controls depend on clear role separation and consistent review standards. The checker should have enough knowledge and authority to challenge the item, request clarification, and confirm that the evidence supports the action being approved.
Separate maker and checker responsibilities for high-risk finance activities.
Use approval thresholds based on value, risk, account type, and entity materiality.
Define evidence requirements for payments, journals, reconciliations, and master data changes.
Align checker review with Disclosure Controls and Procedures where reporting outputs are affected.
Maintain a complete approval history for audit and management review.
Summary
Maker Checker Controls create a structured separation between the person who prepares a finance item and the person who independently reviews and approves it. They improve accountability, strengthen approval discipline, and support accurate reporting across payments, journals, reconciliations, master data, tax, and treasury activities. When connected with ESG Internal Controls, Sustainability Disclosure Controls, and ICFR governance, maker checker controls help finance teams maintain reliable, reviewable, and audit-ready operations.
