IOFM: Accounts Payable Manager Certificate - APM.2 E-
Textbook SG Chapter Three UPDATED ACTUAL
Questions and CORRECT Answers
3.1 Segregation of Duties. What to keep separated? Access to enter or change information in a vendor file Reconciliation of the
checking account Access to systems Access to passwords
3.1 No overlapping These following tasks should not overlap:
*Vendor file management
*Entering invoices
*Matching processes
*Payment runs
*Check handling
*Bank account or internal reconciliation processes
3.1 Employee absences May cause lapses in separation of duties. Can manage by breaking tasks into three
main categories:
*Access to enter invoices
*Ability to generate payments
*Abilities to make additions or changes to vendor file
3.2 Fraud Monitoring Positive pay is an example for fraud monitoring with check fraud
3.2 Performance Assessment and Improvement Utilize Key Performance Indicators (KPIs) to measure departmental and individual
performance against goals.
3.2 AP Related KPIs: Productivity *Invoices per full-time employee (FTE) - measured individually/ by workgroup/ by
department
*PO/Non-PO Invoices processed
3.2 AP Related KPIs: Financial *Cost per process
*Discounts taken and lost discounts
*Percentage of invoices with discounts available
*Late fees paid
*Rebates earned
3.2 Timeliness - cycle times *Time from invoice issuance to received by AP
*Time from invoice receipt to approval
*Time from approval to payment
*Due date versus payment date
*PO date versus invoice date
*Time to approve longer than acceptable/ calculated by approver
Textbook SG Chapter Three UPDATED ACTUAL
Questions and CORRECT Answers
3.1 Segregation of Duties. What to keep separated? Access to enter or change information in a vendor file Reconciliation of the
checking account Access to systems Access to passwords
3.1 No overlapping These following tasks should not overlap:
*Vendor file management
*Entering invoices
*Matching processes
*Payment runs
*Check handling
*Bank account or internal reconciliation processes
3.1 Employee absences May cause lapses in separation of duties. Can manage by breaking tasks into three
main categories:
*Access to enter invoices
*Ability to generate payments
*Abilities to make additions or changes to vendor file
3.2 Fraud Monitoring Positive pay is an example for fraud monitoring with check fraud
3.2 Performance Assessment and Improvement Utilize Key Performance Indicators (KPIs) to measure departmental and individual
performance against goals.
3.2 AP Related KPIs: Productivity *Invoices per full-time employee (FTE) - measured individually/ by workgroup/ by
department
*PO/Non-PO Invoices processed
3.2 AP Related KPIs: Financial *Cost per process
*Discounts taken and lost discounts
*Percentage of invoices with discounts available
*Late fees paid
*Rebates earned
3.2 Timeliness - cycle times *Time from invoice issuance to received by AP
*Time from invoice receipt to approval
*Time from approval to payment
*Due date versus payment date
*PO date versus invoice date
*Time to approve longer than acceptable/ calculated by approver
