Vendors are the lifeblood of many organizations, especially manufacturers. It is important that every organization have a practice of having good vendor relations. This means effectively dealing with the problems that can crop up, be they operational or fraud – and lately there’s been a whole lot of fraud, taking advantage of a weak link in many processes.
Yet, in many organizations, the accounts payable department rarely gives vendor processes and relations a second thought unless a problem arises. This is unfortunate because good processes with regards to vendors can make the accounts payable function more efficient and effective while simultaneously making it more difficult for vendor fraud to be perpetrated. And vendor fraud, to the horror of those it has happened to can come from internal as well as external sources.
Publication Date: September 2022
Designed For
Accountants, controllers, accounting managers, auditors (internal and external), Treasurers, CFOs, CEOs, accounts payable professionals, payroll professionals, procure-to-pay professionals, and travel managers.
Topics Covered
- Vendor Issues
- Operational Issues
- Master Vendor File Issues
- Dealing with Vendors
FraudTypes of Vendor FraudPreventionDetectionFocused Detection TipsNewer FraudsA Word about Bribery
Learning Objectives
- Identify problems within their existing master vendor file practices
- Recognize how to implement master vendor file best practices that will enable proper TIN solicitation
- Identify frauds that can be prevented through good master vendor file practices
- Identify the most current version of IRS Form W-9
- Identify what percent of external actors committing fraud are 'frenemies' of the organization (e.g., agents, vendors, shared service providers, customers, etc.), based on PwC's 2018 Global Economic Crime and Fraud Survey
- Identify what percentage of fraud is reported by employees, based on the 2022 ACFE Report to the Nations
- Identify a sign of analytical anomalies
- Identify what percent of cyber attacks result from procurement fraud, based on PwC's 2018 Global Economic Crime and Fraud Survey
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Accounting (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Mary Schaeffer
Mary Schaeffer, founder of AP Now, is a nationally recognized accounts payable and payments expert. She is the author of 20 business books, including 127 Best Practices for Accounts Payable, the host of the AP Now podcast and YouTube channel and recipient of the 2021 Accounts Payable Association’s Wellbeing for Others Award.
Before starting AP Now, a B2B media firm focused on sharing the latest business intelligence on the accounts payable and payment functions, she worked in the corporate trenches of several large finance and treasury departments. She was a Corporate Cash Manager at Continental Grain, a Financial Risk Manager at O&Y, and an Assistant Treasurer at Equitable Life (now part of AXA). She also held the position of Executive Editor for several business publications. Ms. Schaeffer has a BS in Mathematics from York College (CUNY) and an MBA in Finance from New York University.