Accounts Payable Audit
Every Accounts Payable team needs to conduct an annual audit in order to ensure its processes are effective and accurate. In most cases the knowledge required to carry out this type of activity exists within the Accounts Payable team itself. Relying on your own internal audit team or an external auditor to do this every year is not enough, in an increasingly regulated and pressurised environment.
An Account Payable audit measures and tests all aspects of the functioning of an Accounts Payable (AP) department including the “life cycle” of a purchase from procurement, through to invoice receipt, payment and reconciliation. Every part of that cycle offers numerous opportunities for errors to occur, no matter how refined the corporate systems. These errors could include data entry mistakes, duplicate payments, duplicate invoices, duplicate purchase orders, invoices that have been signed off twice, missed discounts, and overlooked pricing agreements.
If you pay more than 25,000 supplier invoices each year, you are almost certainly incurring errors you know nothing about. According to the Institute of Management and Administration, this is a problem that gets proportionately worse as the size of the company increases, regardless of how good its systems are.
Adopting the right approach and controls could save your organisation thousands of pounds annually as well as guaranteeing a positive report from your audit team and finance director.
FISCAL’s AP Forensics® software allows AP teams to run daily or weekly audits to ensure AP transaction flows are thoroughly checked in a fraction of the time it takes to do it conventional checks. It provides all the advantages of hiring a recovery audit firm but without the cost or disruption. FISCAL’s software is designed to be run as part of your internal Accounts Payable processes and will identify duplicate payments and errors made in the past, as well as protecting your AP team and organisation from day one.
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