Accounts Payable Audit Checklist
Audits, in general, can seem a little scary. But, when you perform audits, particularly on your accounts payable (AP) operations, you can catch fraud, mistakes, bottlenecks, and more before they even occur – saving your company precious time and money. Accounts Payable auditing isn’t only a means to ensure compliance; it’s a way to streamline your operations and increase efficiency.
Whether it’s a legal obligation or not, an Accounts Payable Audit is a good business practice to help you stay on top of your company’s financial activity. Here are a few ways an audit can improve security, efficiency and help find possibilities for cost reduction:
- Double-checking the control over vendor invoices and the approval process helps identify areas where the financial burden/control rests on too few shoulders.
- Reviewing invoices for possible cash discounts and noting due dates brings to light opportunities to take advantage of any available discounts.
- Comparing the terms of sale, prices, and list of goods received on vendor's invoices to purchase orders and receiving reports plus all totals prevents theft, fraud, and embezzlement.
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