Chapter 16
Control Systems
What Are the Controls for a Computerized Accounts Payable System?
The accounts payable process flow is shown in Exhibit 16.1. This process takes advantage of the basic features of a computerized accounting system, including the minimum set of controls needed to ensure that it operates properly.
Exhibit 16.1 Controls for Computerized Accounts Payable
The controls noted in the flowchart are described in the following list, in sequence from the top of the flowchart to the bottom:
- Automatic duplicate invoice number search. The accounting software automatically checks to see if a supplier's invoice number has already been entered, and warns the user if this is the case, thereby avoiding the need for manual investigation of potentially duplicate invoices.
- Conduct three-way match. The payables staff compares the pricing and quantities listed on the supplier invoice to the quantities actually received, as per receiving documents, and the price originally agreed to, as noted in the company's purchase order.
- Print report showing payables by due date. Since the computer system stores the invoice date and number of days allowed until payment, it can report to the user the exact date on which payment must be made for each invoice, thereby eliminating the need to manually monitor this information.
- Check stock from locked storage. Unused check stock should always ...
