Escolar Documentos
Profissional Documentos
Cultura Documentos
Description
Importance
Expenditure Cycle
Identify The Need
o When to order
o What to order
o Who to order from
Use approved vendor list
Price and quality of product
Ability to deliver on time
Service after sale
Approve Requisites
o Purchase Requisition
o Proper approval
o Within budgets
Purchase Order Contract between buyer and vendor
Alternatives
Procurement cards
Custom On-line Catalogues
Control Purchasing Agents Such control ensures that the agents engage
in an arms length transactions; e.g. Bulls ticket, Weber grill
Receive Good
o Count and compare to packing slip and the PO
o Inspect quality
o Document on receiving report
Deliver Goods
o Route goods to warehouse or other departments
o End users sign for goods
Approve Payments
o Approval of the invoice by proper authority
Including the PO, Receiving Report, and the Invoice
o Record the liability
o File by due dates
Prepare and Make Disbursements
o Cashier prepares check
o Treasurer reviews supporting document before signing the check,
cancels supporting document and mails the signed check
o Record disbursement
Fraud
Fraud
Description
Improper Purchases
Purchases inconsistent
Proper supervision
and Payments
Unauthorized
Purchases
Improper purchasing
controls can be used for
personal use
Voucher System
Fraudulent
Purchases to
Related Parties
Invoice Kickback
Misappropriation of
Petty Cash
Unreasonable use of
company credit cards and
expenses
Abuse of Company
Credit Cards or
Expense Accounts
Bid Rigging
Independent purchasing,
receiving, accounting, and
payment departments.
Theft of Company
Checks
Fictitious purchases
Payments made for
amounts larger
than indicated on
the purchase order
Altered invoices
Valid purchases but
paid to someone
other than the
actual payee
Independent purchasing
department
Voucher System
Periodic audit on the voucher
packages and reconcile
authorized payments against
actual payments
Physical security over check
books, multiple signatures on
checks, imprest checking
accounts.
Fraudulent Returns
Theft of Inventory
and Other Assets
Forgery on checks
Issuance of fictitious
returns or for incomplete
or substituted returns
Payroll Fraud
o
Improper
hiring
Phantom employees
Improper
changes to
employee
personnel
files for pay
raises
Improper
work-related
reporting
Proper supervision.
Approval of time cards, leave
forms, reports and so on.
Internal auditing to ensure
compliance with internal
control policies and
commission
procedures.
Internal Controls
o
o
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o
o
o
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o
o
o
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