Audit Action Sheet 1: Suspicious Suppliers

Risk: Medium	Auditor:	Date Performed:	Rating: 0 1 2 3 4
Comments/Observations:

Policy:

• Employees should not also be related to suppliers, except where approved by the controller.
• Suppliers should have valid data (e.g. valid zip codes, phone numbers)
• Payments should only be made to approved suppliers with supporting documentation.

Task:

2. Load complete suppliers and customer master data in IDEA or Excel.
4. Join suppliers and customers with a fuzzy match on address and zip code. Set fuzzy similarity to 50%.
6. Produce a list of suppliers with fuzzy address and validate with controller.

Additional steps

5. Identify any suppliers with incomplete or invalid data (e.g. zip code, phone number)
7. Identify any transactions that involve suspicious suppliers.
9. Review suspicious suppliers with management.

Notes:

• Assign a rating for this task:
  • 4 = no exceptions/issues
  • 3 = few exceptions/issues, transactions are valid
  • 2 = many exceptions/issues, transactions are valid
  • 1 = few exceptions/issues, transactions are invalid
  • 0 = many exceptions/issues, transactions are invalid
• Exceptions should be supported by documentation provided by the controller.
• Collect evidence in working papers along with response from management.

Audit Action Sheet 2: Accounts Payable Balances

Risk: Medium	Auditor:	Date Performed:	Rating: 0 1 2 3 4
Comments/Observations:

Policy:

• Accounts payable balances should be calculated regularly to ensure payments are being made according to the payment terms and company policy.
• Outstanding accounts payable balances should be current or have supporting documentation showing an extension or revision of payment terms.
• Accounts payable balances should pertain to active suppliers.
• Adjustments to accounts payable should have supporting documentation.

Task:

2. Calculate the aged accounts payable balances for suppliers using IDEA or Excel. Summarize all invoices by supplier and all cash receipts by supplier on Invoice Number.
4. Identify any accounts with outstanding balances older than 60 days.
6. Request supporting documentation from the accounts payable manager.

Notes:

• Assign a rating for this task:
  • 4 = no exceptions/issues
  • 3 = few exceptions/issues, transactions are valid
  • 2 = many exceptions/issues, transactions are valid
  • 1 = few exceptions/issues, transactions are invalid
  • 0 = many exceptions/issues, transactions are invalid
• Exceptions should be supported by documentation provided by the controller.
• Collect evidence in working papers along with response from management.

Audit Action Sheet 3: Duplicate Payments

Risk: Medium	Auditor:	Date Performed:	Rating: 0 1 2 3 4
Comments/Observations:

Policy:

• Invoices related to purchase orders should only be paid once.
• Additional or resubmitted invoices should not be paid.
• Payments should only be paid after a three-way match of the invoice, goods receipt, and original purchase order.

Task:

2. Evaluate payments file, and Identify any duplicate payments made to suppliers (e.g. look for identical amounts on different dates, multiple payments referencing the same invoice number)
4. Identify any subsequent invoices and ensure they havent been paid.

Notes:

• Assign a rating for this task:
  • 4 = no exceptions/issues
  • 3 = few exceptions/issues, transactions are valid
  • 2 = many exceptions/issues, transactions are valid
  • 1 = few exceptions/issues, transactions are invalid
  • 0 = many exceptions/issues, transactions are invalid
• Exceptions should be supported by documentation provided by the controller.
• Collect evidence in working papers along with response from management.

Procure-to-Pay Tables and Fields Purchase Orders PO_Number (PK) PO Date PO Amount Supplier ID (FK) Employee ID (FK) Supplier Listing Supplier ID (PK) Supplier Name Invoices Received Invoice Number (PK) PO Number (FK) Invoice Amount Invoice Date Recorded By (FK) Goods Received GR Number (PK) PO Number (FK) GR_Date GR Status Received By (FK) Supplier Type Supplier Since Supplier Contact Supplier Billing Address Supplier Billing City Supplier Billing State Supplier Billing Zip Supplier Billing Phone Supplier AP Terms Payments Made Payment ID (PK) Payment Amount Payment Date User Listing Employee ID (PK) Employee Login Employee First Name Employee Last Name Employee Gender Employee Hire Date Employee Street Address Employee City Employee State Payment Account Invoice Reference (FK) Prepared By (FK) Approved By (FK) Employee Zip Employee Phone Employee Active