Fraud in Purchasing and Cash Disbursement

Weighing the Cost/Benefit of Internal Controls

Purchasing and cash disbursements are common targets for fraud in any entity’s environment. While business owners and managers are aware that internal controls seem to be very important, they often don’t know whether the entity’s system is adequate. While accountants instinctively know that internal controls are important and necessary, it issometimes difficult to effectively communicate this with business owners. It is important to focus on common frauds and internal controls over the purchasing and cash disbursement processes.

Learning Objectives:

This course teaches you to hone in on smaller businesses and nonprofit entities where cost/benefit analysis is extremely important and fraud is more likely to occur. Learn how to efficiently analyze controls to ensure you’re getting the “biggest bang for your buck” when considering a control to implement and/or test.

Topics Discussed:

• Common Fraud Risks within the Purchasing and Cash Disbursement Processes
  
• Analysis of Controls for Effectiveness and Efficiency
  
• Estimating the Cost/Benefit of Correcting a Control Weakness
  
• Control Implementation Ideas
  
• Errors and/or Fraud that Could Occur if Controls are not Implemented
  
• Fraud Statistics
  
• Preventive and Detective Procedures