Requiring existence of approved PO prior to accepting inventory13.Mistakes in countingDo not inform receiving employees about quantity ordered, bar codes, RFIDRequire receiving employees to sign receiving report, incentivesConfiguration of ERP system to flag discrepancies between received & ordered14.Not verifying receipt of servicesBudgetary controls, audits15.Theft of inventoryRestriction of physical access to inventory, documentation of transfersPeriodic physical counts of inventory, reconciliation to recorded quantitiesSegregation of custody of inventory versus receiving of inventoryThreats and controls for approving supplier invoices (more detail in section IV):16.Errors in supplier invoicesVerification of invoice accuracy, requiring details receipts for p-card purchasesRestriction of access to supplier master data, evaluated receipt settlement (ERS)Verification of freight bill and use of approved delivery channels17.Mistakes in posting to accounts payableData entry edit controlsReconciliation of detailed accounts payable with general ledger control accountThreats and controls for cash disbursements (more detail in section V):18.Failure to take advantage of discounts for prompt paymentFiling of invoices by due date, cash flow budgets19.Paying for items not receivedRequiring that all supplier invoices be matched to supporting documents Requiring receipts or corporate credit cards for travel expenses, budgets 20.Duplicate payments Requiring complete voucher package for all payments, pay only original invoicesCancelling all supporting documents when payment is made21.Theft of cash Security of blank checks, access control to EFT terminals, supplier master filePeriodic accounting of all sequentially numbered checks by cashier
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- Fall '17
- Accounting, invoice, purchase requisition