| Fraud type: |
Unauthorised use of purchasing systems in order to misappropriate goods or use services for personal gain |
| Suggested controls: |
Use sequentially numbered purchase order forms for all orders; carry out independent checks to show that purchase orders are valid and accounted for |
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Identify authorised signatories with authorisation limits |
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Before an invoice is certified for payment enure that it is authorised and matched to the original order |
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Keep stock records up to date so that stocks, stock usage and orders can be monitored |
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Separate the duties between those ordering, receiving goods, and approving and paying invoices. This separation of duties should be monitored at all times by a supervisory review |
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Ensure that amendments to standing data, such as the supplier records, are only made by authorised staff |
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Check the coding of invoices to ensure that the correct budget is debited |
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Budget holders should check items of expenditure charged against their budgets. |
