Más contenido relacionado Similar a [Webinar] AP Efficiency: It's All In The Controls (20) [Webinar] AP Efficiency: It's All In The Controls1. Accounts Payable Efficiency:
It's All in the Controls
Mary Schaeffer
Publisher & Editorial Director AP Now
Author Controller & CFO’s Guide to Accounts
Payable + 15 other business books
2. Agenda
Background
Control Problems
Solutions to Control Issues
Closing thoughts
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3. Background
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4. What Do We Mean by Control ‘Issues’
The processes that ensure:
Efficient and effective operations
Reliable and accurate reporting
Fraud resistant operation
Internal
External
Regulatory compliant
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5. Why Are Strong Internal Controls So
Important
Stop duplicate pays
Prevent/Deter/Detect Fraud
Accurate Financial records
Less likely to have IRS trouble
S-Ox compliant
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6. Control Problems
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7. The Audit Trail
Who did what
and when
At the root of many
AP/Purchasing disputes
Difficult in a paper world
Passwords and User IDs help
Weak audit trails – more fraud
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8. Password Sharing
• Sign of weak internal controls
• a few places: Firing offense
• What about short vacations
• A better approach
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9. Workarounds: A Better Way???
What’s a workaround?
Is it better?
Will it create problems elsewhere
Everyone or no one
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10. Signs of Weak
Policy and Procedures
Not written down
Each processor develops their own
workarounds or shortcuts
No limits on the master vendor file
One person doing more than one piece of
the P2P transaction
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11. Lack of Standardization
No creativity when
processing invoices
Everyone does it the same
Data entry
Invoice numbers
Limitations imposed by system
Key what you see
Leading zeros
Punctuation
Names
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12. A Word about Management
Overrides
Fix records
Journal Entries
Backup documentation
Double sign off
Can be fraud problem
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13. Promoting from within
Great move
What about their system access??
How you know you have the problem
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14. Human Error
Everyone makes mistakes
Your controls should catch
Don’t let it be a light bulb moment
Many frauds start with an honest mistake
Invoice submitted twice
T&E: Item paid by corporate card and Reimbursed
on expense report
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15. The Biggest Problem with Weak
Controls
Your employees know where your
weaknesses are
Exploit those weaknesses
The long term trusted
employee
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16. Control Solutions
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17. Newest Approach
Policy of Zero Tolerance
Fraud
Policy abuse
Ethical breaches
Fire
Prosecute
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18. Set the Tone from the Top
Corporate Culture
Flows from the top
Letter on T&E Policy
No special treatment
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19. First Step: Segregation of Duties
The collusion factor
What happens with small AP
departments
Bigger problem in the future
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20. Make Managers Responsible
Look before they sign
Consequences
Firing - rare
Part of annual review
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21. Visibility
Does NOT mean unlimited
access for anyone who wants it
Only as appropriate
Remember SS # and TINs
Ideally AP and purchasing simultaneously
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22. Centralize Receipt of Invoices
One snail mail address
AP
bank
One email
Invoices@
AP@
One fax
In AP for invoices only
E-Fax
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23. Tracking Discrepant Invoices
Why
Duplicates
Fraud
In Excel or system
Regular Follow up and reporting
Aging
The list no one wants to be on
Analyze
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24. Standardization
Everything related to invoice processing:
Procedures
Written policy and procedures manual
Data entry
Invoice numbers
Addresses
Names
Punctuation
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25. Policy and Procedures Manual
Detailed
Written
Updated regularly
Shared with everyone
Can be used as a training manual
Reference guide
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26. Invoice Automation
• Easiest way to incorporate
strong internal controls
throughout the process
• Easiest way to standardize
• Wave of the future
• No longer costs a small
fortune
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27. Big Benefit
Strategic – Accounts Payable
automation frees you and your
staff from mundane tasks, giving
you more time to focus on your
business.
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28. AP: Yesterday vs. Tomorrow
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29. How You Can Get Started
Talk to peers
Vendor demos
Ask Anybill
Email: info@anybill.com
Call: 877-426-9245
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30. Thank you/Questions
Questions always welcome.
To share your thoughts and insights
Mary Schaeffer
marys@ap-now.com
302 836 0540
Sign up for our free weekly ezine at
www.ap-now.com/ezinesignup.html
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31. About Mary Schaeffer
Mary Schaeffer is a nationally recognized accounts payable expert. Following a career
in finance she turned to writing and consulting. For the last 15 years she has been
researching and writing newsletters for the accounts payable profession. Currently she
is the Editorial Director & Publisher of Accounts Payable Now & Tomorrow, (www.ap-
now.com) a fee-based newsletter published by CRYSTALLUS, Inc.
She also handles most of the firms consulting assignments (focused primarily on AP
issues) often working with other well-regarded professionals. Her blog, at http://ap-
now.com/blog/ is read by over 15,000 professionals each month.
Ms. Schaeffer is the author of over 15 business books including The CFO and
Controllers’ Guide to Accounts Payable and the recently published Fraud in Accounts
Payable: How to Prevent It. John Wiley & Sons is the publisher of most of her books.
She also is a regular contributor to the AICPA’s Corporate Finance Insider.
Ms. Schaeffer has a BS in Math from York College (CUNY) and a MBA in Finance from
New York University.
She can be reached at marys@ap-now.com
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