Reconciliation Control and Financial Workflow Redesign in Emerging Market Organizations: A Conceptual Framework

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@article{1717100,
      author = {Elizabeth A Dogbatsey, Osemudiamhen Ebhojie, Ajibola Oluwafemi Oyeleye},
      title = {Reconciliation Control and Financial Workflow Redesign in Emerging Market Organizations: A Conceptual Framework},
      journal = {Iconic Research And Engineering Journals},
      year = {2019},
      volume = {3},
      number = {5},
      pages = {547-564},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1717100.pdf},
      abstract = {Reconciliation controls occupy a pivotal position in the assurance architecture of financial reporting, yet in emerging-market organisations they frequently remain manual, fragmented, and under-institutionalised. This article develops a conceptual framework linking reconciliation control design to end-to-end financial workflow redesign, drawing on the internal control literature, business process redesign, and evidence on enterprise resource planning (ERP) in emerging markets. The framework distinguishes four dimensions of reconciliation maturity: data-source completeness, frequency, automation, and ownership, and maps each dimension to specific workflow levers (standardisation, system integration, segregation of duties, and exception management). It proposes that weaknesses in reconciliation control are, in emerging-market contexts, often symptomatic of prior workflow fragmentation rather than causes of reporting failure in themselves, and that durable improvement therefore requires joint redesign of the reconciliation and the surrounding process. Propositions derived from the framework are set out in a form testable through case-study and survey research. The article concludes by identifying three priority empirical questions: the effect of reconciliation ownership on exception-resolution time, the moderating role of ERP coverage on reconciliation-error frequency, and the interaction between statutory audit scope and reconciliation-control maturity. The framework contributes to practitioner and academic literatures by providing an explicit design theory for reconciliation as a control element rather than as an operational residual.},
      keywords = {Reconciliation Controls, Internal Control, ERP, Emerging Markets, Financial Workflow Redesign, COSO Framework, Process Automation},
      month = {November},
  }