The following are 10 process failures that indicate weaknesses in control.
1. A vendor invoice was posted to the wrong vendor record in the accounts payable master data because the data entry clerk transposed digits in the vendor identification number.
2. Several scanned invoice documents were lost and did not get recorded.
3. The amount of a cash disbursement was what the cash disbursements clerk had authorized prior to running the disbursement program.
4. The AP clerk prepares a list of proposed payments that is based on due dates and vendor payment terms. Many of these payments are not approved by the cash disbursements clerk due to lack of funds.
5. The vendor invoiced for goods that were never delivered. The invoice was paid in its full amount.
6. The unit prices the vendor charged were in excess of those that had been negotiated. The invoice tendered by the vendor was paid.
7. A vendor submitted an invoice in duplicate. The invoice got paid twice.
8. Because of several miscellaneous errors occurring over a number of years, the total of the outstanding vendor payable balances shows a large discrepancy from the balance reflected in the general ledger.
9. Several electronic invoices were misrouted to an organization. The invoices were received, input, and paid, but the organization had never purchased anything from the vendors that were paid.
10. Goods receipts from a certain vendor are always on time. However, the invoices from this vendor are often late or never received. As a result, the organization has lost significant amounts of money by failing to obtain cash discounts for prompt payment.
For each of the process failures described, provide a two- to three-sentence description of the control plan that you believe would best address that deficiency. Obviously, more than one plan could exist that is germane to a particular situation. However, select only one plan for each of the process failures and include in your description a justification of why you believe it is best. When in doubt, opt for the plan that is preventive in nature, as opposed to plans that are detective or corrective.