About Lesson
There are many risks in the cash disbursements process:
Cash disbursements are inaccurately recorded
Cash disbursements are not recorded
Purchasing goods that are not required
Purchasing goods at inflated prices
Purchasing goods of poor quality
Kickbacks
Unreliable suppliers
Qs: Thinking back to the risks we discussed in our last module – what do you think are the risks associated with the cash disbursements process?
Qs: Any idea what types of controls could be used to mitigate these risks? Think about the example we just looked at
There are many risks in the cash disbursements process:
Errors in vendor invoices
Errors in posting the invoices to accounts payable
Payments for items not received
Duplicate payments
Theft of cash (either physical or bank)
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