Purchasing and receiving schemes

An employee orders more than is needed and keeps the excess, records goods as received short or damaged and keeps the difference, or accepts goods without a purchase order so that nothing ties the receipt to an approved need.

Partly covered. The remaining analysis is planned.

Starter pack: Procurement integrity

Red flags

In the data

• Receipts over the PO quantity or with no PO
• PO dated after the invoice; payment dated before the invoice
• Invoices and receipts on weekends and holidays
• Receiving discrepancies concentrated with one receiver

Behavioral

• Employee both orders and receives
• Employee arranges deliveries to unusual locations

Internal controls

• No three-way match of PO, receipt, and invoice
• Purchasing and receiving are not separated