1. A proper system of requisitioning, purchase order placement and approval, receiving, invoice approval, and approval for payment should be well-defined and established.
2. Subsidiary accounts payable records or unpaid vouchers should be reconciled with controlling account at frequent intervals.
3. Check mathematical accuracy of suppliers' invoices prior to recording.
4. Adjustments to accounts payable should be properly approved.
5. Debit balances in accounts payable should be reviewed and resolved.
1. Borrowings on notes payable should be properly authorized. Specify the institutions from which money may be borrowed and designate the officers authorized to sign notes.
2. Unissued notes should be properly safeguarded.
3. Subsidiary notes payable records should be reconciled with controlling account at frequent intervals.
4. Subsidiary notes payable records should be reconciled with controlling account at frequent intervals.
5. Paid notes should be properly cancelled and preserved.
1. Long-term obligation should be properly authorized by the board of directors or by a required majority of the shareholders.
2. There should be proper control over issued and unissued obligations as in bonds, by an independent bond trustee or transfer agent.
3. Redeemed bonds should be cancelled, property mutilated and retained for audit in order to prevent unauthorized issuance.
4. Bond ledger should be used in which details of bond issued, cancelled and outstanding are shown. A subsidiary bondholder's ledger should also be maintained by the issuing corporation or the bond trustee for bonds registered, as to principal and interest.
5. Proper control should be exercised over the payment of interest on long-term liabilities. Payment may be done by an independently engaged interest-paying agent.