IOFM: Accounts Payable Manager Certificate - APM.2 E-
Textbook SG Chapter Two
2.1 Internal Controls Methods used to ensure that the organization meets its goals of efficiency/
accuracy/ compliance. Typically made with policies and procedures
2.1 Financial Statements Provide cash position. Used for many things such as creditworthiness for improved
vendor relations
2.1 I.C. & Laws and Regulations Financial statements must be accurate for reporting purposes. AP plays large role in
handling that accuracy
2.1 I.C. & Fraud Detection Segregation of duties in AP helps prevent and detect fraud
2.1 Segregation of Duties Most important control affecting AP. Failure to design and enforce may result in high
amounts of unwanted exposure to fraud
2.1 Compensating Controls Utilized when AP department has too many duties and not even people. Utilized by
having outside management and executives pick separate duties
2.1 Authorized Signatures Secondary approvals via signature of proper department
2.1 Detect-a-Fraudster *Lifestyle is inconsistent with income
*Experiences financial difficulties
*Acts as exclusive contacts to vendors
*Improper relationships with vendors
*Works outside of normal business hours
2.1 I.C. & Me (Manager) I.C. normally inherited as it applies to the entire organization. AP should
communicate with the organization regularly to better understand potential
weaknesses or process improvements
2.2 Internal Control Framework The system that keeps track of the organization's internal controls. This specifies
what processes are required and how to address them
2.2 I.C. & Governmental Regulation The Committee of Sponsoring Organizations (COSO) has outlined a framework for
I.C. that adheres to government regular.
2.2 Committee of Sponsoring Organizations COSO Commit to integrity and ethics/ will hold employees responsible for realizing vision
Framework: Control Environment
Textbook SG Chapter Two
2.1 Internal Controls Methods used to ensure that the organization meets its goals of efficiency/
accuracy/ compliance. Typically made with policies and procedures
2.1 Financial Statements Provide cash position. Used for many things such as creditworthiness for improved
vendor relations
2.1 I.C. & Laws and Regulations Financial statements must be accurate for reporting purposes. AP plays large role in
handling that accuracy
2.1 I.C. & Fraud Detection Segregation of duties in AP helps prevent and detect fraud
2.1 Segregation of Duties Most important control affecting AP. Failure to design and enforce may result in high
amounts of unwanted exposure to fraud
2.1 Compensating Controls Utilized when AP department has too many duties and not even people. Utilized by
having outside management and executives pick separate duties
2.1 Authorized Signatures Secondary approvals via signature of proper department
2.1 Detect-a-Fraudster *Lifestyle is inconsistent with income
*Experiences financial difficulties
*Acts as exclusive contacts to vendors
*Improper relationships with vendors
*Works outside of normal business hours
2.1 I.C. & Me (Manager) I.C. normally inherited as it applies to the entire organization. AP should
communicate with the organization regularly to better understand potential
weaknesses or process improvements
2.2 Internal Control Framework The system that keeps track of the organization's internal controls. This specifies
what processes are required and how to address them
2.2 I.C. & Governmental Regulation The Committee of Sponsoring Organizations (COSO) has outlined a framework for
I.C. that adheres to government regular.
2.2 Committee of Sponsoring Organizations COSO Commit to integrity and ethics/ will hold employees responsible for realizing vision
Framework: Control Environment
