1. Vendor Master Data.
This item involves reviewing the accuracy and completeness of vendor master data. It includes verifying that vendor information, such as name, address, contact details, and tax identification numbers, is up to date and properly documented.
2. Invoice Verification.
This step focuses on ensuring the accuracy and completeness of invoice processing. It includes verifying that invoices are properly authorized, matched with supporting documentation, and accurately recorded in the accounts payable system.
3. Purchase Order Matching.
This item involves comparing purchase orders with corresponding invoices to ensure that the goods or services received align with the purchase order terms. It helps identify any discrepancies or deviations that require further investigation.
4. Payment Approval and Authorization.
This step involves reviewing the payment approval process to ensure it follows established policies and procedures. It includes verifying that payments are authorized by appropriate personnel and supported by valid documentation.
5. Internal Controls.
This item assesses the effectiveness of internal controls within the accounts payable function. It involves reviewing the segregation of duties, access controls, and other control measures to identify any weaknesses or potential risks of fraud or error.
6. Compliance with Laws and Regulations.
This step focuses on verifying that accounts payable processes comply with relevant laws and regulations. It includes ensuring compliance with tax requirements, vendor compliance, regulatory reporting obligations, and any industry-specific regulations.
7. Duplicate Payments.
This item involves identifying and addressing any instances of duplicate payments. It includes reviewing payment records, identifying duplicate invoices or payments, and implementing measures to prevent future occurrences.
8. Accruals and Prepaid Expenses.
This step involves reviewing accruals and prepaid expenses to ensure that they are appropriately recorded and allocated in the accounts payable system. It helps ensure that expenses are recognized in the correct accounting period.
9. Vendor Statement Reconciliation.
This item focuses on reconciling vendor statements with accounts payable records. It involves comparing outstanding balances, identifying any discrepancies, and resolving any outstanding issues or disputes with vendors.
10. Data Analytics.
This step involves using data analytics techniques to perform in-depth analysis and identify patterns or anomalies in accounts payable data. It helps detect irregularities, potential fraud, or inefficiencies in the accounts payable process.
11. Documentation and Recordkeeping.
This item ensures that proper documentation and recordkeeping practices are followed within the accounts payable function. It involves reviewing the organization's document retention policies, and archiving procedures, and ensuring the availability of supporting documentation for audit purposes.
12. Continuous Process Improvement.
This step focuses on identifying opportunities for process improvements within the accounts payable function. It includes evaluating the efficiency of procedures, exploring automation possibilities, and recommending best practices to enhance the overall effectiveness of the process.