Control Goals of the AP/CD Business Process Control Goal of the Operation Process Ensure Effectiveness of Operations A B Ensure

Efficient Employment of Resources Ensure security of resources Control Goal of the Information Process For payments input, (i.e., checks drawn), ensure: IV IC IA

Recommended Control Plans

For vendor invoice inputs, ensure:

Present Controls:

IV

IC P-1

IA P-1

P-1: Enter vendor invoice data P-1 P-1 correctly P-2: Original invoices are P-2 required as source document. P-3: Matches the RR, Invoice, P-3 PO P-4:Supervisory approval of invoice, and Finance A/P P-4 review & approval P-5: AP staff physically stamp paid on invoices after approval. P-6: All supporting documentation (i.e. invoice) is P-6 stamped paid and filed. P-7: Check number is preprinted on manual checks. P-8: The check register is used to keep track of physical check numbers. P-9: Reviewing missing checks or checks number not running in sequence P-10: Reconcile check register P-10 after each check run P-11: Checks are mailed out P-11 the same day they are drawn. P-12: Only the VP Finance can sign the check P-13: The checks drawn are reviewed by the chief P-13 accountant A: Provide timely payment to suppliers B: Provide correctness of the payment to the suppliers

P-2

P-2 P-3 P-3 P-3

P-4

P-5

P-5

P-5

P-6 P-7 P-8

P-9 P-10 P-11 P-12 P-13 IV: Input Validity IC: Input Completeness P-13 P-13

IA: Input Accuracy