Auditing for Value in the Procure to Pay Cycle Dallas IIA Chapter

More documents

Recommendations

Info

CAAT’s s Examples for ConsiderationProcure-to-Pay Examples• Vendor Master File Analysis (Address, POBoxes, phone numbers between vendors toidentify duplicates)• # of Inactive Vendors with Activity• Payments to Inactive Vendors• Duplicate Vendors, Invoices, Payments• Vendor to Employee Match (SSN/TIN,Address, Phone Number)• Benford’s Law Analysis - Invoice, Payments,PO, and/or Credit Analysis• Missed Discounts – Late Payments• Authorization and Analysis of PR, PO,Invoice, and Payment• Aging and Analysis of AP and CreditProcessing• Holiday Activity• Void/Reissue Payment Analysis• Pricing Books – Accuracy of the Amounts,How often Prices are Monitored forChanges, and How Freight and Sales &Use Tax is Accounted for• Payment Gap Analysis• User Analysis between Vendor Setup,Voucher, and Payment Processing• Analysis of Debit Memos/Adjustments• Analysis of Voucher Reversals/Re-Entry• Analysis of Overpayments/Refunds (unusedcredits)11 © 2009 Protiviti Inc. An Equal Opportunity Employer.CONFIDENTIAL: This document is for your company's internal use only and may not be copied nor distributed to another third party.
Example Output and Analysis ResultsDuplicate PaymentsExample: “$3.5m duplicate payments recovered; $2m in working cap reduction”Approach• Standardize FavorablePayment Terms• Assess ProcurementTransactions• Evaluate Vendor MasterFile for CleanupOpportunities• Determine Potential forProfit Recoveries• Data and SpendAnalytics: A/P, P-Cards,T&E, Claims, ContractCompliance and Fraud• Assessment ofPurchasing and APOperationsBenefit• Reduced FinancialLeakage• Immediate Cash FlowBenefits• Apply Unused CreditMemos• Working CapitalBenefits• Reduced Risk ofFraudulent Activity• Purchase OrderProcessing Efficiency12 © 2009 Protiviti Inc. An Equal Opportunity Employer.CONFIDENTIAL: This document is for your company's internal use only and may not be copied nor distributed to another third party.
Page 1 and 2: Auditing for Value in the Procure t
Page 3 and 4: Overview of ProcurementMost organiz
Page 5 and 6: Trends in Internal Audit Focus / Co
Page 7 and 8: Internal Audit Coverage Considerati
Page 9 and 10: Potential Focus Points and Impact O
Page 11: Data Analysis Approach OverviewProj
Page 15 and 16: Example Output and Analysis Results
Page 17 and 18: Procurement Process ReviewFraud Ind
Page 19 and 20: Selected Accounts Payable MetricsCo
Page 21 and 22: Value Drivers Within P2P Activities
Page 23 and 24: References• Invalid Social Securi

Auditing for Value in the Procure to Pay Cycle Dallas IIA Chapter

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?