Internal accounts payable audits and other controls can help companies to identify and address inaccuracies and inconsistencies before outside investigators come in, according to trade magazine Accounting Age.
Implementing a proper system of checks and balances may decrease the likelihood of fund misappropriation that may occur either as a result of honest mistakes by employees or more malicious actions such as embezzlement. For example, reviewing documents after each payroll can help to identify and minimize the effect of duplicate payments and other irregularities, the source notes.
As well as reviewing finances, companies can use internal audits to identify process inefficiencies and ways to cut costs.
The frequent monitoring of controls not only mitigates the effects of fund misappropriation, but also enables companies to get a step closer towards continuous auditing, the news source reports.
Technology Insight's Recovery Audit Services enable users to recoup lost monies that are not captured by internal or ERP controls, potentially saving companies millions of dollars. The fact that audits are performed either completely or nearly totally off-site minimizes the strain on companies' accounts payable resources.