preview

Vendor Master Controls / Audit Checks

Better Essays
Open Document

LOGO
Process Area Process Sub Area

NONAME CONSULTANTS
Accounts Payable Vendor Master File Checklist Customized? YES NO Process Ref. If “YES”, Approved by AP/01/01

Name of Client:

Assignment:

Job No:

Introduction
This checklist shall outline the controls necessary for the creation and maintenance of vendor information in a VMF in a typical ERP environment. This may be applicable for most accounting systems which we generally experience during our audits and similar assignments. The applicability of these controls generally directly depends on the magnitude of the business (size of the operations) which we are reviewing. Always consult your senior, supervisor or your assistant manager before applying all the controls …show more content…

This is done to check the reliability of the Access Control Matrix you would have obtained. Check the availability of a defined policy. If a defined policy is available check the adequacy of controls in place by referring to the controls matrixes above. Obtain a list of vendors (vendor listing) from IT, sorted by date created. Use the conditional formatting excel tool to identify obvious duplicates. Run through the list to identify further duplications. This checking will take only half a day (maximum). Select a sample based on creation date. Check the Vendor Creation Form corresponding to the name. Identify delays between the approved date of the Vendor Creation Form and the actual creation date. Check the completeness of information both in the VMF and the form. Verify with attached supporting documents such invoices, quotation letters etc. Do the same for any recent amendments to the Vendor Database. Check whether all Vendor Creation/Editing Forms are approved by the relevant authorizing officers. Go through the whole file: pertaining to your scope (and not the sample you selected above). This checking will not take more than 30 minutes. Similarly, obtain a file with forms requesting deactivation of vendors. Check whether those vendors have been duly deactivated in the VMF. Try to pass a dummy payment entry (such as booking an invoice). Check for any undue delays in deactivation.

Recommended Sample Size

Get Access
Related
Get Access