What is the BEST way to control updates to the vendor master file in an accounts payable system?
What is the BEST way to control updates to the vendor master file in an accounts payable system?
The best way to control updates to the vendor master file in an accounts payable system is by comparing updates against authorization. This ensures that any modifications are pre-approved by the appropriate individual or department, which adds a layer of security and helps prevent unauthorized changes, fraud, or errors. By using this approach, the integrity and accuracy of the vendor master file are maintained because only authorized updates are applied.
The best way to control updates to the vendor master file in an accounts payable system is by comparing updates against proper authorization. This ensures that only authorized changes are made, and it helps prevent fraudulent activity or unauthorized modifications.
A is the correct ans , The use of prenumbered provides assurance that all sales are recorded
A is right
A is the right answer. Using prenumbered and authorized request forms
Comparing updates against authorization, involves verifying that any changes made to the vendor master file are authorized by an appropriate individual or department. This may involve implementing a workflow process for requesting and approving updates, as well as comparing any changes made to the file against a list of authorized changes. By using this approach, any unauthorized changes can be quickly identified and investigated, reducing the risk of fraud or errors in payment processing.
Option A, Using prenumbered and authorized request forms, can help ensure that requests to update the vendor master file are legitimate, but it does not provide a way to verify that the requested changes are authorized. A fraudulent request could still be submitted using a prenumbered and authorized request form.
How can a fraudulent request be submitted in authorized request form. Authorized request form in itself mean that someone authorizes it. The question here is about how can you controls the updates which is preventive nature and (A) seems appropriate. Option (D) is detective in nature.
D. Comparing updates against authorization This approach offers the most robust control over vendor master file updates. By requiring authorization before changes are implemented, it helps prevent unauthorized modifications and ensures proper oversight. This is a key aspect of maintaining data integrity and reducing the risk of errors or fraud. While pre-numbered forms (Option A) provide a valuable paper trail, they don't guarantee authorized changes on their own. The authorization process (Option D) acts as a stronger safeguard.
A is a preventive control, whilst D is detective. It is important to have a detective control, however not without pre-approval process. Don't agree with that.
While periodically reviewing the entire vendor master file (option C) is important for detecting discrepancies or errors, comparing updates against authorization (option D) provides a more proactive approach to control. By ensuring that any changes made to the vendor master file are authorized beforehand, organizations can mitigate the risk of unauthorized or fraudulent updates, thereby maintaining the integrity and accuracy of the vendor information. This approach adds an extra layer of security and validation to the update process, helping to prevent potential issues before they occur.
Answer: D is the valid option as best way
A. Using prenumbered and authorized request forms
Using this doesn't guarantee that unauthorized updates will not be made.
A, should be more clear