Procurement procedures, which include segregation of duties
An expenditure or expense is requested by an employee in a department
The department head approves the expenditure
Cheques are prepared and agreed to invoices
Cheques require two signatures and the signors review invoice and cheque simultaneously
Transactions are recorded by someone other than cheque signors
Physical control of cheques
Month-end bank reconciliations
1 – Again we saw this in our fraud cases, the procurement procedures need to be designed with segregation of duties
-Expenses are requested outside of finance and approved by the department head
-Cheques are agreed to invoices from external vendor
-Cheques need two signatures
2 – Physical access to cheques is limited
3 – Again bank reconciliations