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The paper highlights two widely used procedures: balance sheet reconciliation and Interco-Sop (intercompany-standard operating procedures), emphasizing their role in ensuring the accuracy and effectiveness of accounting systems and control practices.",{"@graph":14,"@context":72},[15,34,55],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/template/","Template",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/template/general/","General",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/template/accounting-treatment-and-internal-controls-in-financial-shared-services-of-multinational-corporations/252363/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/accounting-treatment-and-internal-controls-in-financial-shared-services-of-multinational-corporations/252363.png","ImageObject",442,249,{"name":42,"@type":43},"McQueen","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-09-20","2026-09-13",true,{"@type":52,"interactionType":53,"userInteractionCount":30},"InteractionCounter",{"@type":54},"ViewAction",{"@type":56,"mainEntity":57},"FAQPage",[58,64,68],{"name":59,"@type":60,"acceptedAnswer":61},"What role do financial shared services (FSS) play in multinational corporations?","Question",{"text":62,"@type":63},"FSS supports effective cost management and helps companies replace duplicated infrastructures with centralized services, especially in finance-related functions.","Answer",{"name":65,"@type":60,"acceptedAnswer":66},"How does balance sheet reconciliation contribute to internal control?",{"text":67,"@type":63},"Balance sheet reconciliation clarifies accrual-basis accounts and provides structured evidence for internal and external audits, reducing subjectivity and supporting audit effectiveness.",{"name":69,"@type":60,"acceptedAnswer":70},"What is the purpose of Interco-Sop in FSS?",{"text":71,"@type":63},"Interco-Sop provides intercompany-standard operating procedures that help ensure the accounting system’s accuracy and the effectiveness of internal controls.","https://schema.org",{"og:url":32,"og:type":74,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":76,"canonical":32},"index,follow",{"doc_id":78,"site_id":7},252363,1789261232,{"code":4,"msg":81,"data":82},"success",[83,88,93,98,103,108,113,118,123],{"id":84,"doc_module":22,"doc_module_name":25,"category_name":85,"show_sort_weight":86,"slug":87},11,"Presentations",90,"presentations",{"id":89,"doc_module":22,"doc_module_name":25,"category_name":90,"show_sort_weight":91,"slug":92},12,"Resumes",80,"resumes",{"id":94,"doc_module":22,"doc_module_name":25,"category_name":95,"show_sort_weight":96,"slug":97},14,"Invoices",70,"invoices",{"id":99,"doc_module":22,"doc_module_name":25,"category_name":100,"show_sort_weight":101,"slug":102},15,"Posters",60,"posters",{"id":104,"doc_module":22,"doc_module_name":25,"category_name":105,"show_sort_weight":106,"slug":107},16,"Social Media",50,"social-media",{"id":109,"doc_module":22,"doc_module_name":25,"category_name":110,"show_sort_weight":111,"slug":112},17,"Forms",40,"forms",{"id":114,"doc_module":22,"doc_module_name":25,"category_name":115,"show_sort_weight":116,"slug":117},18,"Letters",30,"letters",{"id":119,"doc_module":22,"doc_module_name":25,"category_name":120,"show_sort_weight":121,"slug":122},21,"Paper Templates",5,"papers-templates",{"id":124,"doc_module":22,"doc_module_name":25,"category_name":29,"show_sort_weight":4,"slug":125},158,"general-158",{"code":4,"msg":81,"data":127},{"doc_id":78,"user_id":128,"nickname":42,"user_avatar":129,"doc_module":22,"category_id":124,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":30,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":121,"language":135,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":136,"faqs":137,"seo_title":138,"seo_description":12,"update_tm":79,"read_time":26},5909890329169,"https://ap-avatar.wpscdn.com/davatar_9964176cb1d06d4a9deccf72a44ae3dc","Accounting treatment and internal controls in financial shared services of  \nmultinational corporations*  \nCHEN Min  \n(School of Accounting, Zhongnan University of Economics and Law, Wuhan 430073, China)  \nAbstract: Financial shared services (FSS) play an important role in multinational corporations for the effective cost management. FSS also can reduce errors and fraud so as to achieve perfect internal controls by standardized and procedural business processes which are important parts of internal controls. This paper emphasizes on two popular procedures and methods in multinational corporations. One is balance sheet reconciliation. It can illustrate the situation of accounts on an accrual basis which are the focus of internal audit and external audit. The other is Interco-Sop (Intercompany-standard operating procedure) which are important for to ensure the accuracy and effectiveness of accounting system and internal controls.  \nKey words: financial shared services; balance sheet reconciliation; Interco-Sop  \n1. Financial shared services in multinational companies  \nWith the economical globalization, it becomes increasingly uneconomical for multinational companies to maintain duplicate infrastructures within each area. And many multinational companies have entered into a relatively stable period of growth in which the way to increase profit by increasing revenue has gradually been ineffective and is steadily replaced with compressing costs. Now most multinational companies have established shared services in developing countries. The shared services provide the services in one location which to be used by several recipients in several other locations. It consists of the shared part that is used by several recipients such as internal customers and partners, and the services part which focuses on the services for internal and administrative purposes. The shared services almost only concentrate on the supporting functions such as human resources, IT and finance. Financial Shared Services (FSS), therefore, is a professional financial services centre.  \nFSS caters for the company’s growth whether organic or through acquisition in a cost-effective way. Usually, the costs of human resources in developing countries are notably lower than those in developed countries. In general, the costs of non-production staff in developing countries (such as China, Malaysia) are only equal to 1/10 of those in U.S., 1/13 in Japan and 1/6 to 1/5 in Hong Kong. On the other hand, Financial Shared Services offers the centralized services to the companies. The standardized and clear treatment procedures which are realized by advanced electronic and communication techniques can largely save accounting cost.  \nBesides cost saving, the most important advantage of FSS is that it can reduce errors and fraud so as to achieve perfect internal controls by standardized and procedural business processes. As mentioned by its director of Financial Shared Services, Charlotte Herndon,“We really realized the benefits of shared service when we faced  \n* This paper is subsidized by Accounting Academy of Hubei Province 2008-2010 Research Projects (32510111009) and Zhongnan University of Economics and Law 2009 Basic Research Projects (31540911105) .  \nCHEN Min (1976-), female, Ph.D., lecturer of School of Accounting, Zhongnan University of Economics and Law; research fields: corporate finance and corporate governance.  \nwith Sarbanes-Oxley. We shudder to think what it would like without shared services, as we would have had to take all of the work and multiply it by every single unit. Our business units spent very little time on Sarbanes-Oxley matters because the processes are standardized and documented (Management Report, 2007)”.  \nIn FSS, there are many effective procedures which are applied to ensure accuracy and objectivity of accounting. Of course, they are important parts of internal controls. This article will introduce and analyze some typical procedures and meth","cbCaime5vgwwcYkr","https://ap.wps.com/l/cbCaime5vgwwcYkr","pdf",62046,"English","# Financial shared services in multinational companies\n# Balance sheet reconciliation\n# Interco-Sop","[{\"question\":\"What role do financial shared services (FSS) play in multinational corporations?\",\"answer\":\"FSS supports effective cost management and helps companies replace duplicated infrastructures with centralized services, especially in finance-related functions.\"},{\"question\":\"How does balance sheet reconciliation contribute to internal control?\",\"answer\":\"Balance sheet reconciliation clarifies accrual-basis accounts and provides structured evidence for internal and external audits, reducing subjectivity and supporting audit effectiveness.\"},{\"question\":\"What is the purpose of Interco-Sop in FSS?\",\"answer\":\"Interco-Sop provides intercompany-standard operating procedures that help ensure the accounting system’s accuracy and the effectiveness of internal controls.\"}]","Accounting treatment and internal controls in financial shared services of multinational corporations | PDF"]