Under Learning Objective 3, the Professional Environment box discusses the alarming risk of duplicate payments within the
Question:
Under Learning Objective 3, the Professional Environment box discusses the alarming risk of duplicate payments within the governmental system. Ten different explanations are given as causes for the duplicate entries. Assume you are the new head of the GAO and have a mandate to quickly install new procedures to reduce the risk. Write a report that presents your recommendations to address the ten issues (listed below). Start with a brief introduction that highlights the importance of your proposed changes, and as you list your recommendations, start with ones that are most obvious and/or easiest to implement. Be clear on the recommendations that can be added to the IT application controls and which ones are supervisory issues.
The issues:
1-poor review of vendor master files allowing duplicate vendors.
2-failure to double-check for mis-keying or misreading problems (such as incorrect alpha/numeric issues (0 vs. O), transposing numbers, omitting punctuation, or omitting leading/trailing zeroes).
3-entities being too responsive to vendors who request rushed checks (payment before invoice is processed).
4-payment from multiple source documents.
5-multiple methods for processing an invoice.
6-failure to have all invoices sent to a central location.
7-failure of vendors to provide purchase order numbers on an invoice
8-failure to make appropriate approval of a vendor invoice a company priority.
9-dispute resolution being a low priority.
10-failure to pay only from original invoices or to mark original invoices "paid."
Accounting for Governmental and Nonprofit Entities
ISBN: ?978-0073379609
15th Edition
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus