Internal Controls — Accounts Payable

• All invoices processed for payment represent goods and services received and are accurate as to terms, quantities, prices and extensions; account distributions are accurate and agree with established account classifications.
• All checks are prepared on the basis of adequate and approved documentation, compared with supporting data, and are properly approved and signed by authorized individuals, and mailed.
• All disbursement, accounts payable and encumbrance transactions are promptly and accurately recorded as to payee and amount.
• All entries to accounts payable, reserve for encumbrances, asset and expense accounts, and cash disbursements are properly accumulated, classified and summarized in the accounts.

• Payment is more than optimum price.
• Payment for materials or services is not received.
• Discounts are not taken.
• Damaged or missing goods are not reported.
• Payment is based on improper price or terms.
• Accounting distribution of cost is inaccurate.
• Incorrect or duplicate payments are made.
• Checks are altered.
• Disbursement for materials or services is not properly documented or approved.
• Cash, accounts payable and encumbrance balances are improperly recorded.
• Internal finance data and financial statements are innacurate.