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

[Quilang, Alejandro]

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

This is how new vendor account is set up in our A/P system:   Purchasing department prepares a vendor master document that must be duly approved; Data Management Group (DMG), which is in charge of setting up all master data in our system, sets up the new vendor using the vendor master document from Purchasing department as a source document. Accounts Payable then does the processing of payments to vendors.   Each department reports to different management.   In my own opinion, controls should be focused more on having a formal and documented process of approving and setting up vendors rather than be conscious on the functional reporting of personnel handling the job.   At your service,   Alejandro Q. Quilang III, CPA Sr. Information Systems Auditor Del Monte Philippines, Inc.     -----Original Message----- From: O'Brien, Tim [mailto:[EMAIL PROTECTED] Sent: Saturday, March 08, 2003 12:48 AM To: '[EMAIL PROTECTED]' 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]