Explain the entire P2P cycle and the top 3 risks and controls.

Question

Accepted Answer

P2P process involves risks such as fraud, errors, and non-compliance. Controls like segregation of duties, approvals, and audits can mitigate them.

P2P process involves procurement, receiving, and payment
Risks include fraud, errors, and non-compliance with policies and regulations
Controls include segregation of duties, approvals, and audits
Segregation of duties ensures that no single person has complete control over the process
Approvals ensure that all transactions are authorized and within budget
Audits ensure that the process is followed correctly and identify any issues
Examples of controls include two-person approval for large transactions, regular audits of vendor master data, and automated matching of purchase orders, receipts, and invoices

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