As you know, in addition to proper internal audit, separating tasks, creating a new vendor, or updating a sales master file reduces fraud exposure. Without being complacent about fraud, you are probably satisfied with the current upgrade process. Many A / P stores face the latest or expected A / P system and the process changes you know about the quorum of the Vendor Master process quo is interrupted or broken. To achieve greater efficiency and productivity, A / P and procurement applications rely on Internet and intranet technologies to upgrade Vendor Master. These technologies need to use A / P to improve internal controls or effectively display internal audit challenges when updating the supplier master.
Let me first say the latter – The Challenge. "According to a recent global study by PriceWaterhouseCoopers and Martin Luther University, corporate fraud has risen by 22% over the past two years … Despite the significant corporate controls following the Sarbanes-Oxley law
The study also noted that most corporate fraud has been detected by random means, therefore, the implementation of preventive internal audit developments will only help to try to minimize exposure to fraud, especially if the seller's integrity is to be maintained. to Protect Against Fraud During the most recent recovery audit, I performed A / P Reduction when the company installed an A / P linked front-end intranet application that enabled and enabled non-A / P billing and to enter the account details of the invoice, and to the seller master the number of the seller etc. identify. Editing the data for completeness and valid code encoding before reaching the A / P application and the A / P processor. When the bill and the approved input document were received in A / P, the A / P processor would perform the usual processing and validation routines. What caught my attention, the process has already enabled employees who have now completed the front billing process to create a new vendor in the Supplier Master.
Although the new vendor entry was to be approved by the supplier master as an independent party, I felt a new process opened up the A / P tasks for potential employee malpractice and fraudsters. Despite the fact that A / P increased vigilance over the new process, some of the additional measures that might be needed to protect the Internet against any possible fraud with the Master of Sales were some of the measures I usually recommend to my clients.
is cost-effective and provides an opportunity to keep track of the sales master … keeping in mind that the level of controls used by businesses is often limited by cost considerations. Recognizing that from a cost-effectiveness point of view it is not feasible to create controls that provide 100% anti-fraud protection, it is probably the best that can be achieved by accepting a sales control process that provides reasonable assurance of fraud
When I controlled an A / P class, we confirmed that new service providers with significant first payments are legitimate. In addition, payouts for payers who have only given one PO box as an order or address. In days spent before the Internet, we've verified their credentials with D & B and any other manual tools – such as yellow pages, dialup, etc. Even today, it is much easier to do this check for almost every new seller on the web (web pages and yellow pages), D & B, Hoover access, etc. During my A / P audits I've always suggested this added control to protect customers against all possible fraud
Verification is important
This is the focus of my attention because there are many front-end APs
The employee then prints the cover page, receives the user approval (signatures) on the cover page, attaches the bill to the cover sheet, and transmits the package to AP for payment. For front-end systems where all fields need to fill through the billing application, there may be a disruption
Therefore, I think it is critical to prevent a vendor check in preventing fraud when new vendors can add employees or even other corporate employees. Do you need to add another, separate supplier checkpoint if you think your sales control is worth your experience?
New Vendor Control Guidelines
I recommend someone to double check the seller. Any manufacturer who sends a postal address to an address and no phone number is worth considering. Many organizations do not have the staff to check every new carrier. The attached table includes a new sales checklist that your employees use when selecting new vendors for audits.
When checking a new manufacturer, one of the checked places is one of the yellow pages. Now, not all legitimate sellers advertise. In fact, depending on your business, you will find that many do not. If your potential new supplier is not on yellow pages, try another database, such as D & B, Hoover, Google, Yahoo, and so on.
Record cross-check where you found the verification data. Each company must choose the criteria that you want to control the items that you think are best protected.
Even if manufacturers do not prove to be on the payroll accounts, you can tell people that you're doing. Add a little message to your stuff saying "AP checks new APs." This warning will help small theft. These criminals will be a bit more creative if you want to deceive your organization.
Likewise, you can create a long list of checked items, even if you do not check everything. This is a place where it is perfectly acceptable for bills that are less than 100%. With limited staff sometimes you are requesting a small creative license.
This process is to help protect collusion within the process, because ideally, the AP controlled person is not the person who creates the list of major vendors. If your organization fails to do so, your organization believes that theft is the least of a fraud.
o Check Seller Terms
o Vendors whose accounts do not have an account number
o Sellers with PO Box addresses
o Every new seller for a certain dollar
o Unformatted accounts
o All accounts without phone number
o A certain percentage of all new manufacturers
Source by sbobet