Crafting Effective Internal Controls in the Accounts Payable Function (Currently Unavailable)

Author: Mary Schaeffer

CPE Credit:  2 hours for CPAs

While most executives are savvy enough to realize they need to be concerned about payment fraud, not everyone realizes they can also experience losses if they don’t have the proper controls around all aspects of their AP function. Duplicate and erroneous payments, audit issues and lost vendor credits all have a deleterious bottom line impact. Control problems can creep in at almost any point in the process.

The control process exists at two levels. First there needs to be a good masterplan in place, setting forth the overall guidelines. But this alone is not enough. Close attention to every last detail is critical.

Control problems can creep into the procure-to-pay at almost any point in the process. Mary Schaeffer, your presenter for this session, divides the process into three parts: before the invoice shows up, the processing of the invoice and making of the payment, and the after the invoice is paid processes. Most only focus on the middle part missing a number of opportunities to strengthen controls and eliminate the problems that make a dent in the bottom line. She’ll show you how to take advantage of instilling controls across the entire spectrum.

Publication Date: September 2016

Designed For
Accountants, controllers, accounting managers, auditors (internal and external), accounts payable professionals, and procure-to-pay professionals.

Topics Covered

  • What to do before the invoice shows up
  • Processing of the invoice and making of the payment
  • The after the invoice is paid processes
  • Take advantage of instilling controls across the entire spectrum
  • Controls that no longer work
  • Ensure your segregation of duties regime doesn't fail
  • The four "building blocks" of a strong internal control master plan
  • Best control practices for the entire procure-to-pay process
  • Identify weak controls that need tightening
  • Fix the questionable controls so fraud and erroneous payments don't sneak through
  • Practices that are often overlooked but strengthen controls

Learning Objectives

  • Identify controls that no longer work
  • Recognize and ensure your segregation of duties regime doesn't fail
  • Describe the four "building blocks" of a strong internal control master plan
  • Identify best control practices for the entire procure-to-pay process
  • Evaluate your own processes to identify weak controls that need tightening
  • Differentiate the questionable controls so fraud and erroneous payments don't sneak through
  • Evaluate and introduce practices that are often overlooked but strengthen controls

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Accounting (1 hour), Auditing (1 hour)

Program Prerequisites
None

Advance Preparation
None

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