Accounts Payable (APA) - Normal Controls

Question 1

APA08.2

Answer 1

Review the Accounts Payable aging

Monthly

Question 2

APA09

Answer 2

1. Is the company’s supplier approval policy documented and approved by Management?
2. Does the policy include the following:
   (1) Require independent approval of the new supplier;
   (2) Applies even where the client specifies which suppliers should be used;
   (3) related party relationship check done for the requestor and supplier (code of conduct signed by supplier, google search, etc.);
   (4) ability of supplier to deliver (length of time in business, size, financial security, etc.)

Question 3

APA18

Answer 3

1. Are all corporate credit cards used by employees Amex?
2. If Amex is not used, is the exemption approved by WPP Group Finance Director and/or WPP Director of Internal Audit?
3. Are the staff expenses settled by employees except where written exemption has been obtained from WPP?

Question 4

APA19

Answer 4

1. Does the accounts payable system prevent users from entering the same invoice twice?
2. If no, what alternative control exists to prevent duplicate posting and payment?

Question 5

APA20

Answer 5

1. Are competitive quotations obtained from suppliers, above an annual spend threshold?
2. Is the threshold rationale documented by Management?
3. When the outcome of the quotation process results in a contract renegotiation with an existing vendor, are related party checks performed at that time?

Question 6

APA21

Answer 6

1. Does the Opco have a copy of the WPP advisor payment policy?
2. Do they understand it?
3. Have they applied it correctly?
4. Have they communicated it to all relevant staff, i.e. anybody who is in a position to engage with a third party, who signs up on new clients and/or senior managers as defined on page 1 of WPP policy book?
5. Do they engage advisors?