The A/P department usually presents an attractive target for fraudsters. So ensuring your anti-fraud controls are up to snuff is vital — particularly when it comes this exposure.
According to a recent report by the Association of Certified Fraud Examiners (ACFE), many firms are vulnerable to fraud through their invoice process.
In fact, the ACFE found that almost one-third (27.6%) of all fraud cases involved billing and invoicing.
So it may be a good idea to review your anti-fraud controls in this area — to see if anything can be tightened up.
Here’s one best practice to safeguard your firm: have A/P ask vendors for a line-by-line breakdown on all invoices. This will help to ensure that nothing slips past your Accounts Payable Department.
For more on the ACFE’s report — 2010 Report to the Nations on Occupational Fraud & Abuse — click here.