General Audit Info
Who conducts an external audit
External CPA
How many years does the IRS require you to keep an invoice?
7 years
Which type of companies could be exempt from auditing?
Small public companies, private companies
When is a company audited?
Beginning/End of Fiscal Year
What is one consequence when a company can't provide the information required?
Extended Audit Window, Increased fines
What is the risk of having no segregation of duty?
Possibility to steal funds
TRUE or FALSE: If you are funded by the Gov. you do not need an audit.
FALSE
If the AP team cannot produce an invoice for the original audit window how long will the auditor extend the audit window
6 months
Auditors are making assertations around AP in 3 areas: completeness, classifications, and rights & obligations. Which is at highest risk?
Completeness
What is an integrated audit?
An integrated audit is one that combines the financial statement audit with an audit of your internal controls
Given the example provided by Concur RSE how many hours did the AP person spend looking for 1 invoice?
2 hours
What happens prior to an actual audit taking place?
Auditors will conduct a walk through and risk assessment of the companies AP process.
Name 2 people who would request an audit.
Finance Team, IRS, Shareholders, Risk & Compliance team, Banks
Why would an AP team attempt to lower documented AP spend?
To show investors a higher profit or inflate the company’s net income.
Give 1 of the 3 examples of potential risks an auditor is looking for.
1. No segregation of duties
2. Understatement of invoices/expenses
3. no process for vetting new vendors