Procurement, disbursement and accounts payable transactions are not properly approved or accurately recorded. This sample process flow focuses on the procurement, disbursement and accounts payable processes. It addresses risks such as purchases not properly approved by upper management, cash disbursement activities that are not properly segregated, and provides controls to mitigate associated risks.
Process risks included in this process flow include:
This document should be used as a general guide to understand and review this business process. Organizations should customize this tool to ensure that it reflects their business operations and continuously monitor the process to ensure that the steps described are accurate.
- Purchases not properly approved by upper management.
- Purchases inaccurate in quantity received and inaccurately recorded in the general ledger
- Payments not properly approved
- Payments not recorded accurately in the general ledger
- Cash dispersing duties not segregated
- Accounts payable not properly recorded in the general ledger