LTE_ACL Best Practices AP

ACL "Best Practices"

P VENDOR SETUP AUDIT. EXAMPLES

3

4

Fra ud Detection

Payment lssuanceAna lysis

Check SequenceAna lysis

"lnactive" VendorRecords

Anomalies in

Payment Amounts

Compared employee addresses from payroll/HR(Peoplesoft) to vendor addresses in vendor master file(coDA).

ldentify payments with check dates occurring on theweekend.

ldentify gaps in check number sequence for populationof AIP payment transactions.

Compared A/P payment transactions to vendormaster file to identify vendors that have not beenused in the last two calendar years.

Utilized Benford's law (natural digit frequencies) toidentify potential improper payments

L AUDITS - EXAMPLES

Journal EntryPosters with low #of entries/Seldom-used G/L accounts

J/E AmountsGreater than 99th

percentile ofpopulation

BlankJ/E Poster lDfields

J/E Posting Date

Analysis

UEs with RoundDollar amounts

(thousa nds)

Run the CLASSIFY command in ACL against the J/E

poster lD a ndlor G/L account fields. Output willdisplay the number of postings for each poster oraccount number in the COUNT field.

Sort the transaction table on the amount fieldascending. ln the sorted table, extract to a new tablewith the following command filter:RECNO0>.99*WRITE 1

ldentify transactions without a JIE Poster lD field.

ldentify transactions that were posted on the weekendand / or Com pa ny hol iday.

Using the MOD function (divides two numbers andreturns the remainder), identify J/Es with roundedamounts (thousands)

CAAT Development Resources

o ffi drive at the following filepath:

M:\lnternal Audit\lA Master Templates & Forms\ACL & CAAT Resources

. Protiviti Knowledgeleader or ACL websites

. Knowledge-sharing between lA personnel