Best Vendor Accounts Payable Policies and Practices

Author: Mary Schaeffer

Vendors are the lifeblood of many organizations, especially manufacturers. It is important that every organization have a practice of having good vendor relations. This means effectively dealing with the problems that can crop up, be they operational or fraud – and lately there’s been a whole lot of fraud, taking advantage of a weak link in many processes.

Yet, in many organizations, the accounts payable department rarely gives vendor processes and relations a second thought unless a problem arises. This is unfortunate because good processes with regards to vendors can make the accounts payable function more efficient and effective while simultaneously making it more difficult for vendor fraud to be perpetrated. And vendor fraud, to the horror of those it has happened to can come from internal as well as external sources.

Publication Date: September 2022

Designed For
Accountants, controllers, accounting managers, auditors (internal and external), Treasurers, CFOs, CEOs, accounts payable professionals, payroll professionals, procure-to-pay professionals, and travel managers.

Topics Covered

• Vendor Issues
  • Operational Issues
  • Master Vendor File Issues
  • Dealing with Vendors
• Fraud
  • Types of Vendor Fraud
  • Prevention
  • Detection
  • Focused Detection Tips
  • Newer Frauds
  • A Word about Bribery

Learning Objectives

• Identify problems within their existing master vendor file practices
• Recognize how to implement master vendor file best practices that will enable proper TIN solicitation
• Identify frauds that can be prevented through good master vendor file practices
• Identify the most current version of IRS Form W-9
• Identify what percent of external actors committing fraud are 'frenemies' of the organization (e.g., agents, vendors, shared service providers, customers, etc.), based on PwC's 2018 Global Economic Crime and Fraud Survey
• Identify what percentage of fraud is reported by employees, based on the 2022 ACFE Report to the Nations
• Identify a sign of analytical anomalies
• Identify what percent of cyber attacks result from procurement fraud, based on PwC's 2018 Global Economic Crime and Fraud Survey

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites
None

Advance Preparation
None