Re: Vendor set-up and A/P Processing controls

[S LeRoy]

Title: Vendor set-up and A/P Processing controls

Tim,   Our structure has A/P vendors set up by an employee in the Procurement Area.  Procurement also handles the RFP and bidding process for contracts.  However, purchasing and A/P functions are handled in other areas.    As to your question about controls vs. reporting lines, the segregation of duties in the fashion described addresses both without prioritizing importance.  Hope this helps.   ----- Original Message ----- From: O'Brien, Tim To: '[EMAIL PROTECTED]' Sent: Friday, March 07, 2003 11:47 AM Subject: Vendor set-up and A/P Processing controls Dear Audit-List subscriber, I need your professional opinion and assessment. As trained auditors you know there needs to be a segregation of duties between the employee responsible for setting up new vendor accounts in the A/P system and the employees responsible for accounts payable processing. Given this basic auditing rule, in your opinion is it possible to have adequate segregation of duties between these functions and yet still have them report to the same manager? Final questions, where in your organization does the person responsible for setting up new vendor accounts report?  (A/P, I.S., Purchasing/Procurement, other)? At risk of tainting your opinion I feel compelled to ask: 'Isn't the control processes followed by the person setting up the new vendors more important than their reporting structure?' respectfully submitted, Tim Tim O'Brien Sr. IS Auditor Ball Corporation [EMAIL PROTECTED]