This sample audit report provides an overview of an organization's current accounts payable process and outlines proposed process improvements. Topics addressed include: key metrics, current business unit procedures, standardization procedures, invoice logging, service entries, invoice correction, duplicate payment controls, terms of payment determination, reconciliation reports, and proposed design and implementation changes.
This report describes the value the company will derive from each recommended process improvement. For example, if the company standardizes the process of maintaining an invoice log, it will derive the following value:
An invoice logs maintained by each invoice processing center will assist processors in tracking the ERP entry status of all received invoices. The invoice log will make it more efficient to respond to vendor inquiries regarding the status of unpaid invoices. Over time, it will also identify vendors who are consistently not being paid on time. The invoice log will manage the number of current outstanding invoices and will aid in identifying the specific areas and vendors causing delays in getting correct invoices and those causing significant backlogs in ERP system processing.