A procedure documents a business transaction. It lists the specific steps to complete a transaction, and helps to enforce a high degree of uniformity in how the steps are completed. A procedure often incorporates controls, which are used to lessen the risk of various types of losses. A procedure has 3 purposes:
1. To encourage uniformity in completing the business transactions, which leads to greater efficiency.
2. To enforce the use of controls.
3. To train your employees.