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

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CAAT’s s Examples for Consideration (cont’d)G/L and Journal Entry ExamplesTravel and Entertainment Examples• Benford’s Law on Journal Entriesby User• Journal Entries identifyingoutliers (Uncommon Accounts,Profit Centers, Cost Centers)• Manual Round Dollar Entries• Unusual Posting Dates/Times• Analysis of Split Entries (Entriesjust below Approval Threshold)• Analysis of Suspense, Clearing,and Intercompany Accounts• Credits vs Aged Invoices• Reversed Month End JournalEntries• Entries within Accounts• Inactive Accounts Entries• Calculate and sort percentagevariances in GL accountsbetween periods• Spend by Employee• Analysis of Expenses byEmployee (just belowthreshold, comparison ofemployees expensingduplicates, expensing airfarebut no hotel (vice versa),expensing car but no airfare,etc)• Analysis of MCCG and MCC ofT&E or P-Card Transactions• Benford’s Law Analysis onEmployee Expenses• Expense Dollar and VolumeStratification• Inactive Employee SpendAnalysis• Spend by Expense Type• Large Dollar ExpensesIdentification• Non-Timely ExpenseSubmission• Expense Analysis by Category(e.g., Airfare, Office Supply,Cell Phone, Professional Dues)• Per Diem ExpenseIdentification and comparison totrips, policy threshold, andpotential duplicates in mealreimbursement and per diem• Duplicate Expense Submission• Analysis of WeekendTransaction Dates• Analysis of No Activity fromPersonnel in Expense-CentricDepartments15 © 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.
Procurement Process ReviewFraud Indicator Overview– Illustrative –For Discussion Purposes OnlyReviewing fraud indicators is part of our comprehensive approach and is effective for financial riskmitigation.HighPriorityLow(1)450400400350Examples:30025020015010050016685 91 91533520 20 202210 13 9 10 5Employee SSNvs. DeceasedMaster FileInvalid SSNEmployee vs.Vendor AddressPayments AfterTerminationTotal ReturnedFlagged for ReviewSampledRequires Further ReviewPayments After TerminationEmployee Termination Date Last Payment Date Days Difference Payee Name Payment Count Payments to EmployeeJohn Smith XXX XXX XXX John Smith XX $XXXEmployee vs. Deceased Master FileEmployee Name SSN City State Status Terminated Death master SSN First Name Last Name Death DateJohn Smith XXX-XX-XXXX XXX XX XXX XX XXX-XX-XXXX Jane Williams XXInvalid Social Security NumberValidation SSN Name Job Description Address1 Address2 City State Zip Status TerminatedBad - Invalid Group XXX-XX-XXXX John Smith XXX XXX ABC Lane XXX XX XX XXXXX XX NoEmployee vs. Vendor AddressEmployee Name Employee Key Employee Address City State Vendor Name Vendor Address Vendor City Vendor StateJohn Smith XXXXX ABC Lane XXX XX ABC Company DEF Avenue XXX XX16 © 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 and 12: Data Analysis Approach OverviewProj
Page 13 and 14: Example Output and Analysis Results
Page 15: Example Output and Analysis Results
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

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