Money leaving the business.
WHAT THE RISKS ARE
Payments for goods never received Payments to fictitious suppliers Payments to the correct supplier's wrong account Duplicate payments Unauthorised payments Inflated payments with a share returned
WHAT CONTROLS ADDRESS THEM
Approval before payment, within defined limits Supporting documentation for every payment Matching the invoice to the order and to evidence of receipt Verification of bank details Bank mandates requiring more than one authoriser Review of payments after the fact
WHY MATCHING THREE DOCUMENTS
It establishes that the purchase was authorised, received and correctly invoiced.
WHAT TO NEVER APPROVE
A payment without knowing what it is for.
WHY IT DESERVES STATING
Approval without examination is not approval.
WHAT TO VERIFY ON ANY BANK DETAIL CHANGE
Independently, by telephone, to a number you already hold.
WHY NOT THE NUMBER ON THE REQUEST
It is part of the fraud.
WHAT TO ESTABLISH
That this is a rule without exception, including under urgency.
WHY URGENCY
Manufactured urgency is the standard method.
WHAT TO ESTABLISH ABOUT APPROVAL LIMITS
Who may approve what amount.
WHAT TO WATCH FOR
Payments split to stay below a limit.
WHAT TO ESTABLISH ABOUT BANK ACCESS
Who can initiate, who can authorise, and who can view.
WHY VIEWING RIGHTS MATTER
They allow oversight without transaction capability.
WHAT TO REVIEW PERIODICALLY
The supplier list, for entries you do not recognise New suppliers added Payments to individuals
WHAT TO RECONCILE
Payments made against approvals given.
