So I am a newbie in Auditing and I have one exercise for tomorrow. I have documented the process related to expenses for a Trust organisation and I need to present my findings tomorrow. I need to identify the risks and perhaps their impact if not addressed. The company has no purchase order system. They are using a very basic/simple process. E.g the CEO negotiates personally some project or most ad hoc costs - there is no formal documentation . After agreement they will simply email him the invoice.
Triangular system for expenses. When an invoice is received two persons sign it (heads of Departments usually, the value). If it is bellow certain amount The invoice gets posted into the system. There is no formal review documentation or process just a chat between the one who posts it and the chief accountant. Crib sheets are used.
Payments - there is no BACS set up now so it does not lead to payment process. The person who pays the invoice via online banking performs the checks whether the invoice matches the bank account.
Payments by cheque - person A writes the cheque B signs it and A posts i immediately . The cheque form gets scanned and filled .
Triangular system for expenses. When an invoice is received two persons sign it (heads of Departments usually, the value). If it is bellow certain amount The invoice gets posted into the system. There is no formal review documentation or process just a chat between the one who posts it and the chief accountant. Crib sheets are used.
Payments - there is no BACS set up now so it does not lead to payment process. The person who pays the invoice via online banking performs the checks whether the invoice matches the bank account.
Payments by cheque - person A writes the cheque B signs it and A posts i immediately . The cheque form gets scanned and filled .