Advanced Internal Controlsfor Your AP InvoiceProcessing FunctionMary S. SchaefferAccounts Payable Now &Tomorrow
AgendaO Internal Controls that No Longer WorkO Effective Segregation of DutiesO Practices that Don’t WorkO Eat This not Th...
Internal Controls thatNo Longer Work(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 3
Internal Control Breakdown #1O Segregation of DutiesOversightsO PromotionsO The one exception(c) 2013 CRYSTALLUS, Inc. and...
Internal Control Breakdown #2OPayments made outside APO ACH and/or Wire transfersO Failure to follow same rigid standards ...
Internal Control Breakdown #3O When an Employee leavesO Retrieve credit cardsO T&E, p-card, fuel, one cardO Cut off system...
Internal Control Breakdown #4ORecurring PaymentsO LeasesO End date???O Early termination of leasesO Start of new oneO Don’...
Internal Control Breakdown #5OThe Simple Test Few DoO Employee addresses in HR file vs. Vendoraddresses in Master Vendor F...
Effective and AppropriateSegregation of Duties(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 9
The BasicsO One person per legO Procure-to-pay processO No exceptions(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 10
Do You Have the PromotionProblem?O Do you rely on someone hired fromanother department?O When was the last time someone’sa...
A Word S-OxO Section 404 relates to strong internalcontrolsO Inappropriate segregation of duties is aweak controlO Your em...
When the AP Staff is SmallO Other departments helpO Automation helpsO Audit trailO Who did what whenO Expect this to be a ...
Practices that Don’t WorkDo This, Not That(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 14
Do This, Not That #1O Best: Centralize receipt of invoicesO Worst: Allow invoices to go wherever the vendorsends them(c) 2...
Do This, Not That #2O Best: Return to sender: unidentifiedinvoicesO Worst: Try and determine who orderedgoods on unidentif...
Do This, Not That #3O Best: Everyone uses rigid codingstandardO Worst: Allowing processors to enter dataas they each see f...
Do This, Not That #4O Best: Return to sender: invoice w/oinvoice #O Worst: Enter invoice data without aninvoice number or ...
Do This, Not That #5O Best: Regularly review statements foropen creditsO Worst: Never reviewing statementshoping the vendo...
Do This, Not That #6O Best: Never return checks torequisitionersO Worst: Return checks to anyone whoasks(c) 2013 CRYSTALLU...
Do This, Not That #7O Best: Have a policy regarding use ofpersonal devicesO Worst: Ignore the issue allowingemployees to b...
Do This, Not That #8O Best: Learn as much as possible aboutinvoice automation including how variousvendors’ products workO...
Practices that Don’t WorkDo This, Not That(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 23
Reality Moving ForwardO Technology and automation inroadsO IFO conferenceO First ATMO First online bill paymentO Costs are...
Benefits of Invoice AutomationO Human keying errors eliminatedO Personnel freed up to work on more valueadded workO Disput...
Additional BenefitsO Faster processingO Discrepancies identified early onO Invoices sent for approval automaticallyO Clear...
Have You Scheduled a Demo?O Call: 1-877-426-9245O E-mail: info@anybill.com(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 27
Questions/CommentsShare your thoughts and insights withMary Schaeffer by writing her atmarys@ap-now.com Sign up for her f...
About Mary SchaefferEditorial Director & PublisherCRYSTALLUS, Inc. publisher Accounts Payable Now & Tomorrownewsletter• Cr...
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[Webinar] Advanced Internal Controls for Your AP Invoice Processing Function

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Speaker: Mary Schaeffer, AP Now & Tomorrow

Webinar Recording: https://www2.gotomeeting.com/register/431351562

Internal controls are the crux to stopping fraud and eliminating duplicate payments in any AP process. It sounds straightforward and simple enough, but as those who are involved know only too well, simple is not the way to describe strong internal controls. To get it right, it takes in-depth knowledge and a commitment to strong practices.

In this information-packed hour, Mary Schaeffer of AP Now & Tomorrow will reveal how to:

- Pinpoint and fix internal controls that do not provide the protection your firm needs;

- Execute an effective segregation of duties across the AP platform;

- Eliminate old best practices that no longer work in AP and replace them with practices that protect the enterprise;

- Understand how invoice automation can help achieve your goals.

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[Webinar] Advanced Internal Controls for Your AP Invoice Processing Function

  1. 1. Advanced Internal Controlsfor Your AP InvoiceProcessing FunctionMary S. SchaefferAccounts Payable Now &Tomorrow
  2. 2. AgendaO Internal Controls that No Longer WorkO Effective Segregation of DutiesO Practices that Don’t WorkO Eat This not That*O Do This, Not ThatO How Invoice Automation Can Help* Men’s Health(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 2
  3. 3. Internal Controls thatNo Longer Work(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 3
  4. 4. Internal Control Breakdown #1O Segregation of DutiesOversightsO PromotionsO The one exception(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 4
  5. 5. Internal Control Breakdown #2OPayments made outside APO ACH and/or Wire transfersO Failure to follow same rigid standards used in APO Likely result: Duplicate Payment(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 5
  6. 6. Internal Control Breakdown #3O When an Employee leavesO Retrieve credit cardsO T&E, p-card, fuel, one cardO Cut off system accessO Notify bank immediatelyO Credit cardsO Signing/electronic authorizationsO Deactivate in the master vendor fileO For T&E(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 6
  7. 7. Internal Control Breakdown #4ORecurring PaymentsO LeasesO End date???O Early termination of leasesO Start of new oneO Don’t forget to cancel old paymentsO Loans and early repaymentsO Don’t forget to stop payments on repaidloan(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 7
  8. 8. Internal Control Breakdown #5OThe Simple Test Few DoO Employee addresses in HR file vs. Vendoraddresses in Master Vendor FileO Can be done in Excel using theconditional formatting functionO Many false positives – researchO 2 in 6 years(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 8
  9. 9. Effective and AppropriateSegregation of Duties(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 9
  10. 10. The BasicsO One person per legO Procure-to-pay processO No exceptions(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 10
  11. 11. Do You Have the PromotionProblem?O Do you rely on someone hired fromanother department?O When was the last time someone’saccess was closed offO Don’t forget employees who leftO Run a report showing who has access towhat(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 11
  12. 12. A Word S-OxO Section 404 relates to strong internalcontrolsO Inappropriate segregation of duties is aweak controlO Your employees will knowO The long term trusted employee(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 12
  13. 13. When the AP Staff is SmallO Other departments helpO Automation helpsO Audit trailO Who did what whenO Expect this to be a growing issueO Most frequently movedO Master vendor fileO Check signing(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 13
  14. 14. Practices that Don’t WorkDo This, Not That(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 14
  15. 15. Do This, Not That #1O Best: Centralize receipt of invoicesO Worst: Allow invoices to go wherever the vendorsends them(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 15
  16. 16. Do This, Not That #2O Best: Return to sender: unidentifiedinvoicesO Worst: Try and determine who orderedgoods on unidentified invoices(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 16
  17. 17. Do This, Not That #3O Best: Everyone uses rigid codingstandardO Worst: Allowing processors to enter dataas they each see fit(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 17
  18. 18. Do This, Not That #4O Best: Return to sender: invoice w/oinvoice #O Worst: Enter invoice data without aninvoice number or use the date or vendornumber as invoice number(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 18
  19. 19. Do This, Not That #5O Best: Regularly review statements foropen creditsO Worst: Never reviewing statementshoping the vendor will alert you to opencredits(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 19
  20. 20. Do This, Not That #6O Best: Never return checks torequisitionersO Worst: Return checks to anyone whoasks(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 20
  21. 21. Do This, Not That #7O Best: Have a policy regarding use ofpersonal devicesO Worst: Ignore the issue allowingemployees to bring their own devices towork and use for company initiatives.(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 21
  22. 22. Do This, Not That #8O Best: Learn as much as possible aboutinvoice automation including how variousvendors’ products workO Worst: Ignore the issue hoping it will goaway(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 22
  23. 23. Practices that Don’t WorkDo This, Not That(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 23
  24. 24. Reality Moving ForwardO Technology and automation inroadsO IFO conferenceO First ATMO First online bill paymentO Costs are plummetingO No longer a big-company phenomenaO Invoice automation is for everyone(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 24
  25. 25. Benefits of Invoice AutomationO Human keying errors eliminatedO Personnel freed up to work on more valueadded workO Dispute resolutionO No processor playing gamesO Paying favorites fasterO “Losing” problematic invoices(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 25
  26. 26. Additional BenefitsO Faster processingO Discrepancies identified early onO Invoices sent for approval automaticallyO Clear audit trail and henceO Faster approvals(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 26
  27. 27. Have You Scheduled a Demo?O Call: 1-877-426-9245O E-mail: info@anybill.com(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 27
  28. 28. Questions/CommentsShare your thoughts and insights withMary Schaeffer by writing her atmarys@ap-now.com Sign up for her free weekly ezine atwww.ap-now.com/ezinesignup.html(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 28
  29. 29. About Mary SchaefferEditorial Director & PublisherCRYSTALLUS, Inc. publisher Accounts Payable Now & Tomorrownewsletter• Creator of Institute of Financial Operations Accounts PayableInnovation Certificate program• Editor-at-Large CFO Publishing’s Learning Pro: AP Edition• Nationally recognized accounts payable expert and consultant• Frequent speaker at seminars, conferences and online events• Regular contributor to the AICPA’s Corporate Finance Insider• Writes a free weekly e-zine, e-AP News• Author 17 business books including the just-published 101 BestPractices for Accounts Payable• M.B.A. Finance, NYU• B.S. Math, York College(c) 2013 CRYSTALLUS, Inc. and Mary S. Schaeffer 29
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