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List of Controls For Purchase
List of Controls For Purchase
List of Controls For Purchase
(a) Over the addition, amendment and deletion of suppliers, ensuring that the
standing data only includes suppliers from the company's list of authorized
suppliers
(b) Over purchase invoices and credit notes, to ensure only authorized
purchase invoices and credit notes are posted to the purchase ledger
a) Proper separation of duties, assign related buying functions to different people.
With proper segregation, no single person has complete control over all buying
activities.
- Approve purchases
- Receive ordered materials
- Approve invoices for payment
- Review and reconcile financial records
- Perform inventory counts
b) Practice timely review of supplier’s invoice, packing slips, and purchase orders.
Check accuracy of the information for prior payment, correct quantity ordered, and
price charged. Monthly ledger reconciliation enables you to find improper charges
and validate appropriate financial transactions.
Best practices:
- Review supplier invoices for accuracy by comparing charges to purchase
orders.
- Verify that the goods and services purchased have been received.
- Perform monthly reconciliations of operating ledgers to ensure accuracy and
timeliness of expenses.