Weighing the Cost/Benefit of Internal Controls Purchasing and cash
disbursements are common targets for fraud in any entity’s environment.
While business owners and managers are aware that internal controls seem
to be very important, they often don’t know whether the entity’s system
is adequate. While accountants Topics Discussed Common Fraud Risks
within the Purchasing and Cash Disbursement Processes Analysis of
Controls for Effectiveness and Efficiency Estimating the Cost/Benefit
of Correcting a Control Weakness Control Implementation Ideas Errors
and/or Fraud that Could Occur if Controls are not Implemented Fraud
Statistics Preventive and Detective Procedures instinctively know that
internal controls are important and necessary, it is sometimes difficult
to effectively communicate this with business owners. It is important to
focus on common frauds and internal controls over the purchasing and
cash disbursement processes.