Audit and Accounting > Creditors
The creditor business is one of the areas in which IDEA is most successfully applied. The main objective is to assess the validity. This encompasses instances of supplier over-pricing, invalid invoices, frauds of various types, accidental duplication, and simply identifying out-of-control expenses.
The following are commonly used tests (grouped by type).
- Total the value of invoices
- Identify large payments to suppliers but summarising by supplier
- Stratify by payment value and identify potential invoice splitting below authorisation levels
- Analyse payment type and identify cash payments
- Calculate the number of days that it took for invoices to be paid and identify irregularities
- Identify records where the is variance between the order amount and the invoice amount
- Identify and check valid any missing VAT values
- Isolate payments that where made at weekends and/or bank holidays
Gaps and Duplicates
- Identify missing cheque numbers
- Identify missing purchase order numbers
- Test for duplicate invoice numbers and/or amount
- Test for duplicate payments to suppliers
- Test for duplicate creditors by looking for names and address, bank account details, etc.
Matching and Comparing
- Ensure payments are to valid suppliers
- Ensure that authorisations limits are approved and authoriser is valid
- Identify payments to unauthorised suppliers
- Ensure no payments are made to employees by cross-matching with the payroll database