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Audit Program Area: Vendor Master File

Auditor

AUDIT PROCEDURES WP Ref Initials

Objective

Determine if adequate controls exist and are operating effectively over the

Vendor Master File.

Review directives, policies and procedure as well as other regulations.

Review Accounts Payable Best Practices

Examine vendors to ensure appropriateness of 1099 reporting.

Ensure vendors are submitting a W-9 with their vendor applications and

that verification through the Internal Revenue Service (IRS) online

verification system was completed appropriately.

Test the integrity of computer generated data derived from the Finance

system regarding the Vendor Master File to ensure accuracy and reliability

of the data by reviewing physical documentation and comparing to each

database.

Verify employee access rights to the Vendor Master File to determine if

there was a conflict of interest.

Randomly sample 50 active (Vendor Type = P) vendors out of recent

vendor applications to ensure vendor information data entry was completeand accurate.

Verify appropriate approvals were in place and documentation was on file.

Perform a gap analysis on a sample of 4,005 vendor numbers generated

within the previous five years to determine if there were significant gaps in

numbering.

Review employee vendors and tested for conflicts of interest by comparing

the following:

Employee Name to Contact Name

Employee Name to Vendor Name

Employee Address to Vendor Address

Employee Bank Info to Vendor Bank Info

Employee Phone number to Vendor phone number

Employee fax number to vendor fax number

Employee tax identification number (TIN) to vendor TIN.

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Ensured vendors are deactivated within an appropriate timeframe.

Reviewed the Vendor Master File to ensure that regular cleanup was

performed

Test the Finance systems functionality regarding:

Vendor deactivations and deletions.

Duplicate vendors to ensure the Finance system upgrade was performingeffectively.

One-Time vendors deactivation once a check is printed.

Review naming conventions for the letters A, E, I and R to ensure

compliance with current policies and procedures and consistent application

of vendor names (Ex: Global, Inc. vs. Global Incorporated or Smith, John

vs. John Smith).

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Time Date Date Checked

Spent Expected Finished Remarks By:

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Client NameInternal Control Framework

Completed By:

Reviewed By:

Question Yes No* Comments /Description

Name and Title of Person Completing Form (please print)

Date Completed:

To the best of my knowledge, the answers and comments noted a

Name and Tit

* For a No answer, cross-reference to either a compensating control or to audit work which has been performed

or is to be performed. Questionnaire

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Signature of Person Completing Form

10/3/2014Date Form Completed

Sig

Date o

* For a No answer, cross-reference to either a compensating control or to audit work which has been performed

or is to be performed. Questionnaire

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Employee Responsible for Task

ove are accurate and reflect the current

le of Department Director (please print)

* For a No answer, cross-reference to either a compensating control or to audit work which has been performed

or is to be performed. Questionnaire

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ature of Department Director

Department Director's Signature

* For a No answer, cross-reference to either a compensating control or to audit work which has been performed

or is to be performed. Questionnaire

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Some best practices in maintaining the Vendor Master

File are as follows (1): Limit Vendor Maintenance to very few individuals.

Ensure appropriate segregation of duties exist

between Vendor Maintenance and A/P Invoice entry.

Apply consistent naming conventions (Ex: Global, Inc.

vs. Global Incorporated or Smith, John vs. John Smith).

Prevent duplicate vendors.

Vendor Master Cleanup should be performed on a

consistent and regular basis.

Management should review reports regarding

additions/changes/deletions to the Vendor Master file on

a regular basis.

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Finding Ref # Control Testing Finding

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Management Response & Treatment