The search for exotic processes

Posted by Prof. Dr. Nick Gehrke on Nov 1, 2016 5:00:00 PM

Part VII of the series: “Digitization of auditing SAP purchase processes”

Today’s blog post introduces three interesting indicators for exposing process shortcomings in the area of process plausibility.

  1. Digitization of auditing SAP purchase processes
  2. How process auditing is transformed through digitization
  3. Automated auditing of SAP master data
  4. Auditing of purchase orders and goods received
  5. Invoice auditing in SAP
  6. Just pay it twice: auditing payments in SAP
  7. The search for exotic processes
  8. Segregation of Duties in the SAP purchase process
  9. SAP data structure for the purchase to payables process
  10. The end of digitization - professional judgement in procurement

 

Before you proceed reading on the details of the indicators, I would recommend to read the concept of indicators in part 3 of the series first.

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Three TOP indicators for process plausibility

Every indicator is associated with one process, one process area, one audit objective and one risk respectively. In the following, three indicators from the area of process plausibility will be introduced.

Altogether I have designed and implemented 45 indicators for the purchase process. You can download the details about all purchase indicators here.

 

Download

 

Purchase order prior purchase requisition

This indicator is associated with the audit objective of compliance and correctness.

There is the risk that purchasing process is not compliant or approvals are circumvented.

The criteria for this indicator is:

A document will be marked when the purchase order was processed prior to the purchase requisition.

 

Vendors with multiple bank account changes

This indicator is associated with the audit objective of compliance and correctness.

There is a risk that bank account changes were performed for fraudulent activities.

The criteria for this indicator is:

A document will be marked when it was processed between two changes of the bank account of a vendor used in the document. The two changes of the bank account were made within a time period of 7 days' maximum.

 

Transactions of blocked vendors

This indicator is associated with the audit objective of compliance and correctness.

There is the risk that vendor block is taken out to run a purchase order.

The criteria for this indicator is:

A document will be marked when the vendor has more than one change to the vendor block field within the same day. The changes occurred the same day of the referencing FI document processing date.

 

Topics: Purchase, Process Plausibility, SAP, Audit

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