This document contains two sample audit reports that can be used by auditors to learn how other organizations conducted a purchase-to-payment audit.
Testing involved activities such as establishing standard invoice numbering policies, requiring purchase orders for appropriate incoming invoices, monitoring costs per transaction processing, taking steps to minimize costs, conducting duplicate payment reviews and third-party audits, establishing standard policies and communicating them to the organization, and establishing metrics to monitor performance and compliance. The following observations were noted as a result of testing:
- Many end users are circumventing normal procurement policies and procedures by procuring goods independent of the procurement function.
- Follow-up regarding adherence to policy is required since purchase orders are being set up after the invoice has been received.
- Approximately X% of the purchase order-related invoice transaction volume was processed after receipt of the invoice.
- Since end users are circumventing the process, they are not utilizing the more favorable terms that may exist for a vendor.