TABLE OF CONTENTS
DEDICATION ..................................................................................................................... 7
ACKNOWLEDGMENTS . .................................................................................................. 8
INTRODUCTION ............................................................................................................... 9
CHAPTER 1 INTERNAL CONTROLS ........................................................................... 11 1.1 I NTRODUCTION...............................................................................................................12 1.2 WHAT ARE INTERNAL CONTROLS?................................................................................13 1.3 CONTROL ENVIRONMENT...............................................................................................15 1.4 RISK ASSESSMENT........................................................................................................15 1.5 CONTROL ACTIVITIES.....................................................................................................16 1.6 AR INTERNAL CONTROLS ............................................................................................. 20 1.7 POLICIES AND PROCEDURES (P&P)............................................................................... 20 1.8 AUDIT AND KEY TERMS..................................................................................................21 1.9 FRAUD........................................................................................................................... 22 1.10 CONSEQUENCES OF INADEQUATE INTERNAL CONTROLS..............................................27 CHAPTER 2 UNDERSTANDING YOUR B2B CUSTOMER’S PROCURE TO PAY PROCESS (P2P) .......................................................................... 28 2.1 INTRODUCTION. ............................................................................................................ 29 2.2 NON-PO PURCHASES....................................................................................................29 2.3 PO PURCHASES..............................................................................................................31 2.4 THE PERFECT INVOICE...................................................................................................32 2.5 DSO AND DPO...............................................................................................................33 2.6 SENDING STATEMENTS OF PAST DUE INVOICES...........................................................34 2.7 AP AND PROCURE-TO-PAY BEST PRACTICES................................................................34 2.8 CONCLUSION................................................................................................................. 36 CHAPTER 3 CUSTOMER MASTER FILE . ................................................................ 37 3.1 INTRODUCTION. ............................................................................................................ 38 3.2 OWNERSHIP. ..................................................................................................................39 3.3 CUSTOMER FILE DOCUMENTATION................................................................................39 3.4 VERIFYING CUSTOMER DATA..........................................................................................41 3.5 UPDATING THE CUSTOMER MASTER FILE.....................................................................43 3.6 ENTERING AND SECURING CMF DATA...........................................................................43 3.7 CYCLE TIME...................................................................................................................44 3.8 CONCLUSION................................................................................................................. 44
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THE ACCOUNTS RECEIVABLE SPECIALIST CERTIFICATION PROGRAM E-TEXTBOOK
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