Exoedge1019
Uploaded on Apr 1, 2025
Category
Economy & Finance
The presentation on "Internal Controls & Fraud Prevention in Accounts Payable" by Exo Edge emphasizes the importance of strong financial controls in property management accounting. It begins by highlighting the need for internal controls to prevent fraud, improve efficiency, and maintain accuracy in accounts payable processes. Key controls such as segregation of duties, approval workflows, invoice matching, reconciliations, and vendor verification are essential in mitigating risks.
Category
Economy & Finance
Internal Controls & Fraud Prevention in Accounts Payable
Internal Controls & Fraud Prevention in
Accounts Payable
Presented by Exo Edge
Introduction to Internal Controls in Accounts Payable
● Importance of internal controls in AP
● Preventing fraud and financial mismanagement
● Enhancing efficiency and accuracy in property management
accounting
Key Internal Controls in AP
● Segregation of Duties: Avoid single-person control over invoices & payments
● Approval Workflows: Multi-level authorization for payment processing
● Invoice Matching: 3-way match (PO, invoice, receipt) to ensure accuracy
● Regular Reconciliations: Periodic reviews to detect discrepancies
● Vendor Verification: Background checks to prevent fictitious vendors
Fraud Risks in Accounts Payable
● Duplicate Payments: Paying the same invoice multiple times
● Fictitious Vendors & Invoices: Fake companies created for fraudulent payments
● Collusion & Kickbacks: Internal employees conspiring with vendors
● Check Tampering & Payment Fraud: Unauthorized alterations or diversions
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