All 24 Invoice Processing questions
More in Invoice Processing
How are utility and telecom invoices with variable amounts controlled? How do you account for invoices received after period-end for goods/services already received (accruals)? What is the GR/IR (Goods Received/Invoice Received) clearing account and how is it reconciled? How do you measure and improve AP invoice processing efficiency? What is the difference between capital and revenue expenditure at the invoicing stage, and why does coding matter?
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Accounts Payable & Receivable › Invoice Processing

What internal controls mitigate fraud risk in invoice processing?

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Answer

Key controls include segregation of duties (the person entering invoices can't approve payments or edit vendor bank details), vendor master change controls with call-back verification, three-way matching, duplicate detection, approval thresholds, and monitoring for red flags like invoices just under approval limits or new vendors with round-sum amounts. These counter fake-vendor and business-email-compromise schemes.
Real-world example A change to a supplier's bank details triggers an independent phone call-back to a known contact before any payment, blocking a BEC fraud attempt.

Common follow-ups: What is business email compromise? | Why control vendor master changes?

Vendor Management Payment Runs Invoice Processing
All 24 Invoice Processing questions