What risks are present if you take too long to pay

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Reference no: EM133435979

Questions:

1. What risks are present if you take too long to pay our accounts payable?

2. What are some analyses you could perform that would provide insight into how efficiently your company is processing payments to suppliers? Are there any KPIs that would be appropriate here?

3. In your opinion, what would be an appropriate benchmark for the average number of discount dollars lost as a percentage of available discount dollars? How about erroneous payments as a percentage of total payments? Would management want these numbers to be higher or lower?

4.What statistical tools can we use to diagnose behavior that is outside of normal behavior?

5. How might an outlier be used to focus the auditors on high-risk transactions?

6. While you still have your auditor hat on, what are some additional analyses you could perform to understand whether the purchase process is being followed or controls are functioning properly? (Use COSO framework)

7. When might a large company prefer to forfeit discounts on its invoices?

8. What alternative options could we use to reduce our accounts payable?

Reference no: EM133435979

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