All payments are authorised, made to correct payees and recorded

Question 1

What is risk

Answer 1

Invoices are paid without being authorised and not accurately recorded in the accounting records

Question 2

What is control objectives

Answer 2

Ensure that invoices are only paid once authorised and that payment is made to correct payee and recorded

Question 3

What are controls (invoices)

Answer 3

Invoices should be authorised for payment

Question 4

What are controls (supplier)

Answer 4

Coded to relevant supplier by appropriate budget holder prior to invoice being paid

Question 5

What are controls (authorisation)

Answer 5

Authorisation/coding should be evidenced by a signature

Question 6

What is tests of controls? (coding)

Answer 6

Inspect a sample of invoices for authorisation and appropriate coding

Question 7

What are controls (authorisation)

Answer 7

Statements received from suppliers should be reconciled to relevant purchase ledger account on a monthly basis. Any further changes to accounting records must be authorised

Question 8

What is tests of controls? (reconciliations)

Answer 8

Review a sample of supplier statement reconciliations to ensure they have been completed accurately and any resultant changes authorised