Regular accounts payable audits are able to pinpoint many types of financial misappropriation, including embezzlement, duplicate payments and noncompliance. These audits also provide businesses and organizations with recommendations for improving their financial compliance procedures.
One municipality in Missouri is taking the findings from an AP audit that was conducted recently to improve its accounting processes and prevent fiscal errors in the future. According to the Sikeston Standard Democrat, Mississippi County was found to have a severe lack of documentation regarding financial transactions. Officials have taken these results into consideration and are now implementing policies that enforce stronger documentation when dealing with the county's various accounts.
The news source reports that the municipality has taken the first step to the audit recommendations, which includes weekly approval of bank reconciliations, accounts payable, payroll and other financial assessments. The findings also suggested that Mississippi County integrate more internal control practices into its fiscal operations so there will be more oversight with taxpayers' money.
Companies of every size and industry can take advantage of AP audits to gain better insight into their financial processes and discover any evidence of misappropriation.