Hi
everyone, in this article you can find the common data analytics that can be
performed in internal audit of Procure To Pay (P2P) process. The entire article
contains around 30 key data analytics w.r.t P2P process in two parts (part I
&II).
ALSO READ PART II HERE
- To check if there are incorrect or
incomplete details in vendor master
To check if there are any
incomplete / incorrect details in the following fields
- Supplier name
- Address (street, city, district)
- Telephone
- Bank Details
- To check if there are any incomplete /
incorrect statutory details in vendor master
To check if there are any
discrepancies in statutory details like
- Invalid PAN
- GST number not updated
- Invalid GST
- PAN in GST number is not matching with
PAN submitted
- State code in GST number is not
matching with state code of address given
- PAN not updated
- To check if there are any duplicate
vendor codes in supplier master data
To check if there are any
duplicate supplier accounts created to be identified with the following logic
- Output 1 (High probability) - supplier
name + company code + same bank details + same address
- Output 2 (Medium probability) -
Supplier name + company code + same address
- Output 3 (Low probability) - Supplier
name + Company code
- To check payroll employees matching with
the vendor master
To check if there is any
supplier account created with the employee details matching with the below
combinations
- Output 1 - Name match
- Output 2 - Address match
- Output 3 - Bank details match
- Output 4 - PAN details match
- To check vendors with negative balance
List of vendors with
negative balance
- To check vendors with advances pending
to be knocked off
From the list of transactions identify
advances paid but are pending to be knocked off against a corresponding invoice
- To identify list of vendors who have
been block listed by various statutory authorities
Compare supplier list with the willful defaulters
list published by RBI / FATF
- To check timely creation, approval,
accuracy and completeness of purchase order
To check Turnaround time (TAT) of creation of
purchase order (PO creation date vs PR approval date)
- Purchase order profiling
Visualization proving insights into the
following
- Top suppliers
- Top materials
- Movement of supplier cost over the
period
- Number of Purchase orders
- Number of Open PO's
- User creating the PO and user approving
the PO
· To check timely creation, approval, accuracy and completeness of purchase order
To check turnaround time of approving the purchase
order. (PO approval date vs PO creation date)
· To check timely creation, approval, accuracy and completeness of purchase order
Compare material wise PO details with PR, to check
on the following discrepancies
- Total PO quantity of the material >
PR quantity
- PO created for cancelled / rejected /
unapproved PR
To check whether PO has
been created for cancelled / rejected / unapproved PR
- Unauthorized creation of PO
Compare the PO details with respective PR's to
check on the following discrepancies
- Total PO quantity of the material <
PR quantity
- Purchase order raised without
corresponding PR
To check if a PO was
created without a corresponding Purchase requisition
- High unit price variations (trend
analysis)
- Same material procured from same vendor
at different price
- Same material procured from different
vendors at different price
ALSO READ PART II HERE
