This tool contains two sample audit reports that can be used by auditors to perform an organization’s accounts payable audit.
Testing involved activities such as determining if key financial and business controls exist and are operating effectively, assessing the operating efficiency of the process, reviewing performance measures used to monitor and improve the process, and assessing compliance with applicable corporate policies and procedures. The following observations were noted as a result of testing:
- Policies and procedures for key AP processes should be formally documented and updated.
- Purchasing card limits should be followed or revised if they are not appropriate.
- Credit memos should be properly communicated to appropriate AP personnel and should be resolved on time.
- Performance measures are not utilized to monitor the AP process.