Though the preceding list of controls constitutes the basic controls needed for automated check signing, the next controls can be used to bol­ster the level of control over the process.

• Restrict access to purchase order documents. If the purchasing depart­ment uses paper-based purchase orders, then it must restrict access to the purchase orders by locking them in a storage cabinet when not in use. Otherwise, blank forms could be used by unauthorized parties to order goods.
• Prenumber purchase orders and track missing documents. If the pur­chasing department uses paper-based purchase orders, it can more eas­ily determine if blank forms have been removed by prenumbering all purchase orders, keeping track of the numbers used, and investigating any missing numbers. This approach makes it less likely that blank forms will be removed from the department.
• Restrict access to the purchase order database. If the purchasing de­partment creates all of its purchase orders through a computer database, then it must restrict access to that database to guard against the unau­thorized creation of purchase orders. Typical controls include password protection, regular password changes, access being limited to a small number of purchasing staff, and a human resources check-off list for departing employees that calls for the immediate cancellation of their database access privileges.

• Compare payments to authorizing purchase orders. This detective con­trol is used to spot payments made without a supporting purchase order, which constitutes evidence of a breach in the purchase order control re­quirement.
• Review old open purchase orders. This detective control is useful for determining which outstanding purchase orders are no longer needed and can be cancelled. Taking this step makes it less likely that someone could use an old, open purchase order to order goods inappropriately.

Though the use of purchase orders can provide a very effective level of con­trol over purchases, it also results in a great deal of “paper-pushing” labor by the purchasing staff, which must create a purchase order for every item that a company acquires. To reduce the amount of purchasing labor while still retaining a high level of control over purchases, it is logical to imple­ment procurement cards, which are described in the next section.

[tags]automatic check sign[/tags]

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