Accounts Payable Separation of Duties: Prevent Employee Fraud [Episode 117]

Accounts Payable Separation of Duties: Prevent Employee Fraud is an issue of great importance. Accounts Payable Separation of Duties is something frequently ignored, despite the fact that most professionals know it is crucial if they wish to Prevent Employee Fraud. Separation of duties is sometimes called segregation of duties. The separation of duties internal control is critical when it comes to controlling or minimizing employee fraud. This can take the form of embezzlement, billing fraud, collusion, or pink-collar fraud.

When it comes to the type of fraud that typically goes on in an accounts payable function, it is almost completely white-collar fraud, or its subset, pink-collar fraud. Payment fraud trends and prevention have become critical for all organizations. Hence payment fraud prevention relying on segregation of duties as an internal control makes perfect sense.

This is Episode 117 of the AP Now podcast

Link to why Separation of Duties (2 and one half minute video) is critical: https://www.youtube.com/watch?v=IWU1So76Uxc

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Appropriate accounts payable separation of duties goes a long way to preventing employee fraud. That’s why auditors and best practice practitioners make such a big deal out of Accounts Payable separation of duties. Not only is it an efficient way to run the accounts payable function, it helps prevent employee fraud. Segregation of duties or as some call it separation of duties is an important internal control, especially when it comes to employee fraud prevention.

Whether that fraud be embezzlement or billing fraud, collusion can be an important component of a fraud. White collar crime can be a payment fraud and the trends and techniques needed for prevention start with segregation of duties. Payment fraud prevention relies heavily on the segregation of duties internal control. This is why it is so critical.

Host: Mary Schaeffer (https://www.ap-now.com/)

Credit: Music: https://www.purple-planet.com