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Company 9 Case Study

Satisfactory Essays

Company X pays approximately $2 million in invoices each day. Using proper internal controls, you can ensure that goods and services are received, and payments are properly processed. Ensure that payment documents are processed correctly by having different people involved in the payment process. This principle is called separation of duties. Best practice is to have different people: Approve purchases Receive ordered materials Approve invoices for payment Review and reconcile financial records Potential consequences if duties are not separated: Erroneous or fraudulent invoices approved for payment Unauthorized payments made to non-existent vendors Accountability ensures that you authorize,

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