This sample report summarizes findings and provides recommendations from a purchase-to-payment process review.
The vendor master file is the starting point for a well-controlled purchase-to-payment process. In this sample, the company is focused on establishing efficient and streamlined processes, as well as utilizing strategic sourcing, providing added value through decreased operational costs and effective supplier management. As the company continues to grow, assessing and modifying the processes and procedures will be mandatory to remain efficient and effective, and the vendor master is part of that equation. A non-maintained vendor master file can lead to increased risk of financial leakage, missed discounts, duplicate payments, fraudulent activities and higher processing and/or product costs.
Hence, the objectives of this audit are to: analyze the vendor database to identify cleansing opportunities (duplicate vendors, dormant vendors, etc.); perform forensic testing to identify potential fraud indicators in the vendor master file; and understand the business impact that the vendor master file has on operations.