Feeling out of control is not a feeling we like to experience. Reminders, sticky notes and to-do lists are a testament of us striving for control.
If this is true, how do we allow work to get out of control? It could be unclear ownership, lack of time or any number of other excuses.
One area we frequently see neglected is the vendor master file — a database used to capture pertinent supplier data and to pay vendors for products and services. Without strong controls and an established review process, the vendor master file can be easily exploited.
Common frauds include payments to shell vendors and related parties, duplicate payments, and fictitious invoices. These types of frauds are more likely to occur when segregation of duties are weak.
Whatever the size of your organization, the state of your current vendor master or shape of the control environment, here are some tips to regain control:
In part two of this article, we will review how to assess vendor and payment validity, ensure segregation of duties and conduct ongoing maintenance. With a leaner vendor master, these next steps will be less burdensome.
Interested in learning more? Connect with HORNE Franchise.