Internal Controls in Accounts Payable: Creating a Strong Framework and Processes (Currently Unavailable)

Author: Mary Schaeffer

You can’t have best practices in accounts payable without strong internal controls. They are an integral part. They are also very easy to overlook. 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 into the procure-to-pay at almost any point in the process. Join expert, Mary Schaeffer, as she shows you how to take advantage of instilling controls across the entire accounts payable spectrum.

Publication Date: July 2019

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

• Background
• How Control Problems Are Created
• The Building Blocks for your Internal Control Master Plan
• New Control Headaches
• Concluding Thoughts

Learning Objectives

• Identify how to take advantage of instilling controls across the entire accounts payable spectrum
• Recognize controls that no longer work
• Identify what is likely to occur when adequate attention is paid to the invoice processing function
• Recognize what represents a potential conflict of the segregation of duties principle
• Identify what will help to prevent duplicate payments
• Recognize how frequently should the accounts payable policy and procedures manual be updated, from a best practice standpoint
• Describe what action should be taken regarding their company credit card, when an employee leaves
• Identify what action should be taken when an employee receives an email from a vendor requesting a change in the bank accounts where payments are sent
• Recognize what strong internal controls help deter
• Describe appropriate segregation of duties
• Identify what should the person responsible for the master vendor file be able to do
• Describe an acceptable practice if it is impossible to establish appropriate segregation of duties
• Recognize what helps prevent/detect occupational fraud
• Describe what will ensure an invoice that was paid by wire transfer will not be paid a second time by check
• Identify what you should do with inactive vendors in the master vendor file
• Identify a practice for returning checks to requisitioners
• Describe what should happen to an employee's access to the ERP system, when an employee leaves the organization
• Recognize the reason a detailed accounts payable policy and procedure manual is recommended

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites
None

Advance Preparation
None